Chapter 257 Legendary Pictures

After more than a month of planning and negotiation, Legendary Pictures officially listed in Hollywood with the joint support of various forces.

It's a day for all eyes!

It is also an epoch-making day for the development of Hollywood!

There are 6 shareholders of Legendary Pictures, with a total investment of 360 million US dollars.

Among them, Dunn Capital invested 100 million US dollars and is the largest shareholder, accounting for 27.8% of the total share capital.

In addition to the capital injection from these shareholders, Michael Ovitz also successfully obtained a $140 million debt priority loan from Bank of Merrill Lynch. The repayment interest is between 6% and 10%, which can be described as very favorable.

So far, Legendary Pictures has a total of 500 million US dollars on its books!

As for the platter investment plan, the investment of the producer must account for the majority, and the investment of the platter party is between 10% and 40%. This can ensure that the producer takes most of the risks and strives for perfection, and at the same time, the platter side can also share enough investment pressure.

Today's Hollywood movies have an average investment of about 30 million US dollars, and a large film company produces about 15-20 movies a year.

In other words, the total annual investment of a large film company in film production will be between 500 million and 600 million US dollars.

This number is really not much!

Just look at the production investment of Tang En Pictures this year?

"Unsinkable" $200 million, "Mr. and Mrs. Smith" $100 million, "The Chronicles of Narnia" $70 million, "A Beautiful Mind" $40 million, and "The Web" $50 million.

Not counting the investment in TV dramas, Tang En Pictures' investment in movies this year has already reached 420 million US dollars!

That's just 5 movies!

If you count blockbuster films such as the "Pirates Alliance" series and the sequel to "Spider-Man" that will be launched in the spring of next year, the amount of investment will be terrifying!

This shows that Dunn Films operates differently from other Hollywood giants.

Tang En Pictures is Tang En's private property, and he has the foresight, so he can safely and boldly invest in huge blockbuster movies!

There is no need for outside investment to share the risk.

On the other hand, some film giants, even Disney, spent 140 million US dollars to invest in a "Pearl Harbor", and they were very nervous up and down. They wished that everyone from Michael Eisner to Auntie Cleaning would pay close attention to this project.

Legendary Pictures has a book capital of 500 million US dollars. According to Michael Ovitz, 20 million US dollars of working capital is reserved, and the remaining 480 million US dollars can be invested in the platter investment plan.

Tang En pays close attention to this project, not only because he is the major shareholder of Legendary Pictures, but also because the "Assortment Investment" model will be his key move to dominate Hollywood in the future!

According to the anti-monopoly law of the United States, whether it is music or movies, the copyright share of such entertainment companies cannot occupy one-third of the market.

In other words, a total of 374 films were released in the United States in 2000. If Tang En Pictures released more than 125 films this year, it would trigger the anti-monopoly clause!

Of course, judging from the current eye sockets, no company can release such a large number of films. Even giants such as Warner, Disney, and Paramount have an annual release of about 30 films.

But... what if?

Tang En has just entered Hollywood for 4 years, and he has already achieved a promising career, even rivaling Disney.

In a few years, who can guarantee that Tang En Pictures will not rule Hollywood?

On the verge of issuing monopoly clauses, the platter investment model is the best weapon.

Through Legendary Pictures' platter investment, Tang En can smoothly participate in the film production of other film companies.

As Legendary Pictures had more partners, Twain's sphere of influence became wider.

If Legendary and the Big Six all get in touch...

That means that Twain has the right to participate in more than 95% of Hollywood movies!

In this way, even if Twain Films wants to limit its scale in the film field in the future, Twain can still participate in most of the film productions, and he will become a veritable master of Hollywood!

Because movies are Hollywood!

Of course, all of this is still only in Tang En's paper vision. Legendary Pictures has just been established. Now, the first client needs to be confirmed.

Dunn flew back to Los Angeles from Boston to have a detailed talk with Michael Ovitz.

According to Michael Ovitz, Legendary Pictures currently has US$500 million in funds and US$480 million in available funds. The amount of funds is not small, but it is not appropriate to involve too many partners.

Judging from the current situation, it is best to choose only two partners, sign each contract for two years, and invest 120 million US dollars in each film company every year, accounting for 20% of the share, which is more appropriate.

For Twain, the more partners the better, if he can pull the six giants into his chariot, then his position in Hollywood will be solid.

However, the total available funds are only 480 million US dollars. Short-term contracts will greatly increase the investment risk of Legendary Pictures, and a balance must be found between the number of cooperative allies and investment returns.

Twain agreed with Michael Ovitz's point of view, "You can find a film giant first and complete the contract. The second partner can be found slowly. Whoever offers favorable conditions, we can cooperate with whoever!"

Of course, this also included Tang En's selfishness. As long as the second partner of Legendary Pictures has not been confirmed, then those Hollywood tycoons who hope to obtain capital investment will definitely revolve around him and keep currying favor with him.

"Who are you going to give this first business to?" Michael Ovitz looked at Tang En with a half-smile.

To Michael Ovitz, as long as he succeeds in attracting funds from Wall Street, he is equal to success!

Regardless of the fact that Legendary Films has an investment of 100 million US dollars from Tang En Capital and Michael Ovitz's own 80 million funds, but don't forget, this is Hollywood!

The power of Legendary Pictures is in their hands!

Even if the platter investment really fails and the losses are serious, with Michael Ovitz's status and means in Hollywood, it is easy enough to operate, allowing Dunn Capital and his personal funds to be successfully cashed out, and the loss of Legendary Pictures is due to Wall Street bear.

There are too many tricks in Hollywood!

Especially for foreign investors, they will never be polite in the slightest!

Wall Street is still doing relatively well. After all, they are all American compatriots. In the future, large sums of money from Asia and the Middle East will enter Hollywood... Hey, that is the real open door!

Therefore, the smooth opening of Legendary Pictures was a profitable business for Michael Ovitz. Of course, he had enough respect for his little friend Twain.

Tang En smiled, "Recently... a lot of film companies have contacted us, right?"

"Needless to say?" Michael Ovitz's face showed a proud brilliance, as if he had returned to the domineering when he dominated Hollywood. "Except for Disney, the other five major studios have shown their favor. Are you You know, my banquet invitations during this time are so scary!"

Tang En was sitting in his office with his legs crossed, looking very comfortable, "Assortment investment is a new concept. I didn't expect those old guys to be quite enthusiastic about it."

Michael Ovitz waved his hand, "Hey, how many people really understand the concept of platter investment? The rich are the masters!"

Tang En glanced at him with a half-smile, "You already know our first partner, right?"

"Oh?" Michael Ovitz blinked, "It's okay, I can respect your decision."

Tang En smiled strangely, "Michael, you are not honest, I don't believe you can't guess my idea!"

Michael Ovitz was taken aback for a moment, then burst out laughing.

"Although there are six giants in Hollywood, there is only one company that is really suitable for us to cooperate with now." Tang En said lightly.

Michael Ovitz nodded, "That's right, this partner must meet the investment potential of Legendary Pictures, and at the same time provide enough backing support for Dunn Pictures."

Then he took a deep look at Tang En, and said, "It just so happens that Warner Bros.'s life has not been easy recently."

Tang En said with a smile: "In the past, Hollywood was fooling other fields. Unexpectedly, Time Warner was deceived by an Internet company! I heard... In order to make up for losses, Time Warner intends to sell its Warner Publishing Group?"

Michael Ovitz said: "The merger of AOL and Time Warner was a failure. AOL is an asset-light Internet company. If it wants to sell assets to make up for the shortfall, it must sell Warner's related businesses. Maybe Warner Publishing Group, maybe Warner Music Group. In short... Warner Bros. will not be able to get a penny of capital injection from the parent company in the next few years."

Tang En nodded happily, picked up the fragrant coffee, took a sip, and said with satisfaction: "So, Warner is the first partner of Legendary Pictures!"

"I think so too!"

Michael Ovitz immediately admired.

The merger of AOL and Time Warner has already lost 40 billion US dollars, but the dead camel is bigger than the horse, and Warner Bros. is still the largest film studio in Hollywood.

In terms of strength, background, and influence, Warner has a pivotal position in Hollywood.

If Tang En Pictures had Warner's escort behind it, it would have a basic guarantee if it encountered such unreasonable sanctions from Disney in the future, and it would not have to work as hard as it did in the past few months.

Moreover, since Twain came up with the "Assorted Platter Investment Plan" and issued a blocking order to Disney, Warner has also shown enough sincerity.

In the face of Disney's attack on Tang En Pictures, Warner not only did not make trouble, but also defended Tang En Pictures' rights and interests in every way. This is human favor.

So from any perspective, Warner Bros. is the best candidate for Legendary Pictures' first major client!

"In this case, Michael, I'll trouble you to make arrangements. Let's discuss some cooperation details with the person in charge of Warner."

When Tang En stood up, he felt that the land of Hollywood under his feet was thicker and more stable.