Legendary Hollywood Producer

Since the beginning of the new millennium, the annual cost of major Hollywood studios on film production has risen rapidly, and the corresponding marketing costs have also increased day by day. And such a large scale of investment, once it fails, the consequences can almost cause those producers to collapse.

Just like those few money-losing movies with famous film history, they have attracted countless latecomers to avoid:

The 1995 sci-fi giant "Future Water World" cost nearly 200 million US dollars, but only earned 35 million at the box office. Many senior executives from the world stepped down, and the director Kevin Reynolds will be responsible for this film all his life. Debt repayment

In the same year, a pirate-themed movie "Cut Throat" was released. Investor Karlok Films invested US$92 million and finally received a box office record of US$9.5 million. Such a large loss directly caused the original company to be in good condition. Carlock Pictures went bankrupt and was fully acquired by MGM United Artists. The failure of this film also affected the film production industry’s fear of touching pirates, a once-popular subject matter, until the appearance of the coquettish pirate holding the orchid finger;

The live-action animation film "Final Fantasy: Deep in the Soul" produced and shot in 2001 was even more directly compensated by the island game company. After all, it invested 140 million US dollars, but the box office was only 32.1 million US dollars. It is indeed a movie history. The big event...

And there are many such examples, so those Hollywood studios have also learned their lesson. Instead of investing too much money in risky film production, they fully introduce external funds to cover the production costs of film projects. .

Under such an opportunity, various financing methods have emerged.

What Roman chose to cooperate with Smecta investors this time is a financial operation method called "Panpan Investment".

Because the investors belong to different entertainment companies, this kind of cooperation is also the most suitable in order to better mobilize funds.

As the name implies, “Panpan Investment” means that a large number of film projects within a certain range of a certain production agency are packaged together to operate.

Its advantage is that a variety of films with different profit potentials can have an interest that belongs to the investor.

This way of thinking about investors does not mean that Roman conscience has discovered it, but that this kind of operation is also very beneficial to the production company.

Manhai Entertainment can completely rely on the operating means of "combined investment" and get most of the profits of the film without spending a penny.

Because the film production costs are filled with foreign funds, until the film is released, Roman's company does not need to pay. When the film is released and needs to be announced, Roman can go to the bank to apply for a loan to complete this part of the work with the various production procedures of the film and the guarantee for the completion of the film.

In this way, when the movie gains revenue, the Western European Film Industry’s distribution costs and publicity costs can be left-handedly and right-handed, repaying the bank’s loan, and freeing up some room for accounting.

When all the dust falls, those financial operation methods are not afraid of being discovered by others, because all these are legal and in compliance with regulations.

In fact, many Hollywood production companies do this. This is also the film operation experience that Roman has learned after going to Paramount Pictures.

It's just that the premise of all this is to build on the condition that the market potential is very good after the movie is released, otherwise the bank will not easily lend to the film company.

One of the requirements of the application procedure is to use the profit of other channels in the follow-up of the film as a guarantee. After all, does bank lending require interest? No one is willing to do business at a loss.

The whole process is that the film project is set up-the capital flows in to start production-enters post-production-estimates the market to apply for a loan-obtains the profit from each party.

After Roman gave a detailed introduction of the investment situation, the investors in the Smecta entertainment industry who were present nodded and praised the idea.

Through their simple analysis, it is not difficult to see that this set of plans is very beneficial to investors. Choosing "combined investment" can spread the risk to multiple movie projects. As long as the box office of the top-selling movies can offset those movies that have lost the box office, they can make a profit.

The previous performance of Manhai Entertainment has always been worthy of trust.

Next, financing became very smooth.

The entertainment companies in Smecta are eager to change the status quo, and investing in Hollywood movies is a high-quality project in itself, so how can you not be tempted?

In just half an hour, Roman received an investment quota of about 100 million U.S. dollars.

There are too many people interested in investing, and Roman never refuses to come. No matter how much money he has, he wants it all.

This is not the mainland, and there is no need to control the number of people who enter the market. Instead, the more the better is better for Roman. As for the profit distribution at that time, when the quota ratio is unclear due to too many people, it will be a matter of the Smecta country. Roman just takes out this part of the total income and aligns the ledger.

"Li Xiuman, how much is your sm company going to invest in?" In an increasingly heated venue, a middle-aged man in a suit and leather shoes approached the sm company's founder and asked in a low voice.

The comer is Jin Canyi, the main shareholder of the up company.

Li Xiuman glanced at him and replied in a low voice: "It hasn't been decided yet. I still need to discuss with the board of directors."

"Have you not made a decision yet?" Jin Canyi looked at the area where Ino-Jordon was responsible for registering the investment amount, and said: "I have negotiated with b2m to put out 50 million U.S. dollars each for joint investment. Do you sm want to get involved?"

Jin Canyi's plan is simple. It is also very profitable for the three top entertainment companies in the industry to jointly occupy more than half of the investment share. After all, it also involves distribution. Of course, who has the greater right to speak is more advantageous.

Listening to these words, Li Xiuman was also thinking about gains and losses in his heart. In fact, the relationship between the three companies is not so good that they can jointly participate in investment. Because of the high degree of overlap in the business, there is usually no friction, but at this time, Jin Canyi’s proposal is very impressive. Heartbeat.

Quickly clarify his thoughts. Li Xiuman, who is a businessman, cannot speak out the words of rejection. He is a smart man and can see the benefits of doing so, so sm company, which has long been communicated with the board of directors, also joined this The so-called triangle alliance.

Immediately afterwards, they jointly invested 150 million US dollars and invested in the financing and platter project plan.

They also signed their company's name on the prepared financing contract that was verified by the lawyers of both parties.

From this moment on, the signed contract will protect the part of the income they deserve.