I’m in Hollywood

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In North America, media interested in Firefly's revenue status have not been able to obtain Firefly's public annual financial report, and when the invitation to interview with Firefly's executives has been rejected, in order to gain attention, they have begun to follow the information collected from other sources. Conduct independent analysis.

The data given by the professional financial media is quite reliable, but the non-professional entertainment media basically have no research, and they are completely fabricated according to the model of how to attract attention and how to write. Business speculation is spread across media outlets large and small, most of which are baselessly exaggerated for the sake of eyeballs, and sales of these magazines often climb considerably. In just a few days, the annual profit of Firefly Pictures in the media even soared to a maximum of 2.6 billion US dollars. Even Eric himself did not know how those magazines calculated it.

Jeffrey pushed open the door of Eric's office, and saw that Eric was slumped in the leather chair, his legs resting on the dark red desk, and he was leisurely holding a thick printed document in his hand. He flipped through the pages, so he knocked on the door again.

Eric put away his sitting position and put the document in his hand on the table before reaching out to Jeffrey: Jeffrey, is there something?

Jeffrey walked across to Eric, pulled the chair and sat down, glanced at the document Eric had just read, and asked curiously, New script?

No, Eric smiled and pushed the document over: Look at it, it was sent by Chris.

Hearing that it was sent by his son, Jeffrey picked it up curiously, only to find that it turned out to be a contract about the equity incentive plan for the management of ie company. Hastily turned a few pages. Jeffrey was a little dizzy and didn't look any further. It's just a contract, it has more than 110 pages, like a thick book, the rules are more complicated than the contracts signed by Hollywood stars and studios.

I discussed with Chris on Thanksgiving, and planned to give IE, Yahoo and the management of the three companies about 20% of the equity rewards in 1995 according to performance. This is the draft contract that Chris sent me, Ire said. Ke saw that Jeffrey quickly put down the typescript in his hand, and took the initiative to explain.

Take the market expansion speed shown by ie and yahoo. The market value of the two companies that have withdrawn from the product has exceeded 100 million US dollars in the capital market. Therefore, the 20% equity incentive plan is not a trivial matter. Chris has fully negotiated with the management of the three companies. It took a month to complete the contract, and the contract had detailed provisions on various terms and possibilities. There were more than 100 pages. Even Eric was a little surprised when he saw it for the first time, but after reading it, I also feel that there are no clauses in it that are groundless and aimless. It can be seen that Chris has spent a lot of energy on this matter.

I don't know much about the things you've come up with. Jeffrey shook his head with a smile, and then said, Caroline has made the annual financial report. You can take a look first. Free handed Eric the documents he brought when he just walked in.

Oh, so fast, I thought it would be another week, Eric said. The new year has just passed, and it's less than a week after the holiday. Eric didn't think about the work efficiency of the finance department. would be so high.

I urged Caroline a few times on purpose, Jeffrey said while watching Eric flip through the documents: There is so much trouble outside, I always feel relieved to do it earlier, Eric, right? Let Caroline hold a press conference and give a little bit of information to the outside world, otherwise the media will not stop.

Eric looked down at Firefly's 1992 financial report and said: They have touted Firefly's annual profit to 2.6 billion,

Anyone with a little brains knows this is nonsense, so let them guess, we have no obligation to satisfy their curiosity.

Jeffrey smiled with satisfaction on his face, and said: Although the figure of 2.6 billion US dollars is indeed a bit outrageous, if the film and television entertainment market in North America and overseas continues to expand according to the current situation, it may not take a few years for Firefly reach that level.”

Of course, it's a matter of time, Eric continued.

Firefly's current main profitable business includes four major sectors: film and television entertainment, peripheral products, theme parks and TV business. Unlike more than ten years later, the profit of film and television entertainment will only account for a small percentage of the media group's revenue. At present, the film and television of the seven major Hollywood film companies Entertainment revenue is still the most important profit point.

In Firefly's financial report in 1992, the total revenue of film and television entertainment including North American box office revenue, overseas box office revenue and video tape distribution was 4.2 billion US dollars. Although overseas box office revenue accounted for the highest share, reaching 1.8 billion US dollars, but The profit margin of overseas box office is the lowest. Deducting the cost of overseas theater companies and distribution budgets, the overseas profit margin is only 14%, and the profit is about 250 million US dollars, while the profit margin of North American box office revenue is higher, 1.5 billion. From the North American box office revenue of US dollars, after deducting publicity and production costs, Firefly can get a total of 520 million US dollars. The final videotape distribution has the highest profit margin because it is self-published. Firefly’s $900 million in videotape revenue, after deducting distribution costs, has a profit of $580 million. This figure is almost indistinguishable from box office revenue, or even a little more than North American domestic revenue, but this is not too surprising, as early as the late 1980s, video tape revenue of major film companies has been equal to box office revenue.

The next revenue of peripheral products mainly depends on the Disney peripheral product store. After the acquisition of Disney, Firefly handed over the development power of the peripheral products of “Toy Story”, which was a big hit at the box office last year, to the relevant departments of Disney. Therefore, this year’s Disney store’s Store sales were at $1.6 billion and gross profit was $330 million. The theme parks and resorts had revenue of $3.7 billion, but because of huge operating costs, the profit margin was only about 10%, and revenue was $360 million.

besides. The finance department allocated the TV series licensing revenue from Firefly's films to the TV business. Combined with Friends, The X-Files and Who Will Be a Millionaire and Firefly's 10 percent stake in the Fox network, the combined profits totaled $720 million.

If operating expenses are not considered at all. All of the above profits add up to a total of $2.76 billion, which is not far from the $2.6 billion in annual profits touted in the media.

However, although some costs have been deducted from this figure, the salaries of thousands of employees in the Firefly system and other hardware and software expenses are still quite large, and Firefly also provides a steady stream of technical departments for its digital field and Pixar studio. The technology research and development funds, plus Firefly will also pay off part of the principal and interest of the $2 billion in debt that it was carrying for the original acquisition of Disney, minus these expenses. A profit of $2.76 billion leaves only about $1.5 billion.

This is not to mention the profit that Firefly finally pockets. Don’t forget, the business tax rate of North American companies is 35%. After deducting the taxes that should be paid, Firefly’s annual net profit is only 980 million.

980 million! At the end, Eric couldn't help but sigh, feeling the urge to fight with the IRS.

Yeah, 980 million! Jeffrey's tone was quite encouraging. Currently, the Seventh Hollywood High School owns high-profit TV stations such as Turner Broadcasting Company. Warner's annual profit has only reached 950 million US dollars, and Warner has been in the position of Hollywood dominance for almost a decade. And the financial report in Eric's hand also announced that starting this year, Firefly will finally drive Warner out of the position of Hollywood boss. Thinking of this, Jeffrey couldn't help but ask: Eric, the next movie What are you going to do?

Eric put down the financial report document, shook his head and said, At present, I have no further plans, at least until next year.

Jeffrey said unexpectedly: Why, we already have so much cash in our hands, it would be a pity not to invest.

But we can't simply invest for the sake of investment, and these cash can't meet my needs, Eric said. According to the historical trajectory, the scale of investment in movies is getting higher and higher, which means that film and television entertainment Profits in this business segment will decline rapidly, while TV network profits have been rising, and may even account for more than half of all media group revenues in a decade or so.

Therefore, Firefly's next expansion plan will definitely develop towards the TV business.

However, although none of the three major TV networks in North America has yet fallen into the hands of media groups, and the market value has not started to skyrocket, but if you want to acquire, the asking price will still not be too low. It is not so easy to encounter the second time, and Eric does not want to borrow heavily from investment institutions, so of course the best way is to rely on his own strength to accumulate funds.

Although Firefly's profit this year has already excited the company, as long as next year's Jurassic Park can achieve the same sensational effect and record-breaking box office as the original time and space, then Firefly's profits next year will skyrocket again. With a few other things going on, Firefly will surely be able to raise enough money to spend on the network's acquisitions.

Eric was talking to Jeffrey about his future plans. Allen knocked on the office door a few times and walked in after being allowed.

Eric, here is an interview invitation for you, I think you need to see it? Allen nodded to Jeffrey and walked over.

Eric was a little puzzled. He had already told Allen to reject all interview invitations from the media. Since Allen still sent the invitation letter to him, it would definitely not be a simple invitation.

Forbes Magazine? Eric raised his eyebrows in surprise when he saw the interview invitation, and had a bad premonition in his heart.

Allen nodded, but his expression was quite happy: This is an invitation sent by Steve Forbes, the editor-in-chief of Forbes magazine, and there is some information below.

Eric hummed, but continued to read.

Since the early 1980s, Forbes has launched a sensational list of the richest Americans. Since 1985, with the rapid rise of the Walmart supermarket chain, Walmart founder Sam Walton has occupied the top spot on the list of the richest Americans. Richest man position.

However, it is a pity that Sam Walton passed away in April last year, and his wealth of more than 20 billion US dollars was equally distributed to his wife and several children. In this case, Walton Although the Walton family is still the richest family in the United States, in terms of personal wealth, it is impossible for any member of the Walton family to become the richest man in North America.

At this time, in the information attached to the interview invitation letter sent by Forbes magazine, an overall valuation of Firefly Pictures Group was carried out, and the final figure was 10.5 billion US dollars. Forbes magazine According to the information collected from various channels, excluding the liabilities of Firefly Pictures, plus the assets owned by Eric in Firefly Investments, the valuation of Eric's worth is 9.5 billion US dollars, and this figure, Kankan was able to take the No. 1 spot on the North American Rich List.

In the original time and space, in 1995, Bill Gates rose to the top of the North American rich list with a net worth of more than 12 billion US dollars. However, the North American economy has not yet begun to recover, coupled with the creation of business miracles. After the death of Sam Walton, Eric's valuation of $9.5 billion has already been able to get the top spot on the rich list.

After careful calculation, Eric currently holds more than 98% of Firefly's assets. The Firefly shares that Jeffrey and Michael Lynn held at the beginning were also diluted after the acquisition of Disney, and Jeffrey's shareholding ratio was also diluted. Only one percent is left, Michael Lynn has even less, and Pixar executives John Lasseter, Ed Carmore and Stan Winston, who oversees the digital realm, have There are some shares in the corresponding branch, so it can be said that Eric almost completely owns Firefly.

If Firefly is a listed company, with this year's performance, after the annual financial report is released, it is basically not a problem for the market value to easily exceed the $10.5 billion valuation given by Forbes magazine, but Forbes magazine obviously also knows the strong investment in film and television. Uncertainty, so the valuation given is relatively accurate, and this number minus the debt of Firefly Pictures is obviously the net worth that Eric obtained through this company, but Eric is still high. The technology industry has some other investments. Cisco has experienced a number of expansionary mergers and acquisitions. The number of shares held by Firefly Investments has decreased slightly, but it still maintains 36% of the shares. Based on Cisco's current market value, it is about one billion. Around US dollars, this is also the most valuable business currently owned by Firefly Investments.

The billion-dollar cash reserve in Firefly's investment hands was apparently not detected by Forbes magazine.

Calculated like this, 9.5 billion US dollars, on the surface, is indeed more in line with Eric's current net worth. (To be continued...)

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