Chapter 526 Strategy

Barry Diller hadn't performed his duties yet, so the structural reorganization and strategic reconstruction of the New Universal Group naturally fell on Tang En.

Fortunately, when it comes to strategic decisions in the general direction, Dunn is quite confident.

Maybe he is not good at micro-management, but he has a vision beyond the times. He knows which strategic direction to develop, and the future of the group will be more competitive!

Future media giants, such as Netflix, Disney, and Comcast, are all examples to learn from!

Netflix is ​​now Tang En's company.

As for Disney and Comcast, it is best to plan in advance and take away the resources that originally belonged to them!

"In the next 18 months, invest 300 million US dollars to expand the scale of global international distribution and global home entertainment, and ensure that our film distribution channels can spread all over the world! Not to mention being the first in the industry, we must also cooperate with Disney, Warner Bros. hit a level!"

Although the group's senior management has not yet been formed, Tang En has already held a meeting for the existing senior executives impatiently.

It is necessary to set up an accurate and clear goal and direction for New Global Group.

Universal's distribution channels are a bit weak, and only in some mainstream developed countries, there are complete institutional systems; some developing countries cooperate with Paramount to distribute and share the risk; and even smaller countries have no distribution at all. channel, the film must be handed over to the local distribution company.

This is too lacking in the grandeur of a large group company!

On the surface, the issuing branch company will get a higher proportion of accounts if they issue by themselves; the deeper meaning is to establish a brand image.

The brand value of Disney and Warner is so high because they have channels all over the world.

Universal Pictures has changed hands several times in the past ten years, first Panasonic, then Seagram, and then Vivendi. These parent companies are very irresponsible.

Delay in building the best global brands.

The past decade marked the beginning of economic globalization.

The sooner you eat crabs, the greater the profit!

Fortunately, this is only 2002, not too late.

Tang En took over the "Universal" label, so he must fully promote the "Universal" brand!

The first step is to build and complete global distribution channels.

Although, after the group company repaid the debt of 2.3 billion US dollars in one go, the cash flow pressure was very high.

However, the latest "Spider-Man 2" videotape and DVD release are very gratifying!

Within 3 days of its launch, the sales in North America successfully exceeded 200 million US dollars!

Television copyrights have also been snatched up by various countries around the world.

The first round of broadcasting in North America will definitely be in charge of the STA TV network, so there is no need to consider the money. However, for the first round of overseas sales, negotiations can be completed within half a month, and a revenue close to 100 million US dollars can be obtained.

Moreover, with the latest remittance of "Spider-Man 2" and "Pirate Alliance: The Curse of the Black Pearl" by the theater, New Universal Group has an additional US$470 million on its books.

Although Martin Scorsese's masterpiece "The Viceroy" box office ... not as expected.

However, New Universal Group is not short of money!

"The first step is to open up global channels. The second step is to make New Global a true multinational group! Not only must there be a headquarters, but also an overseas headquarters! The customs tax will be paid from now on. If you can avoid it, you can avoid it! Brandy, you have to grasp this piece yourself, choose a suitable area, and build the overseas headquarters of New Global!"

Tang En is no longer the Xiaobai he was back then.

Now he is not proficient in American tax rates, but he has a good understanding of the general tax laws.

The United States implements a "double taxation" system, also known as a "global taxation" system.

This is related to national policy.

The green card of the United States reads: "No matter where you are in any country or region in the world, you will be protected by the world's most powerful navy, marine corps, air force, and army."

In other words, as long as it is an American, or an American company, anywhere in the world, it will be protected by the same laws as the United States.

Regardless of whether it is cowhide or the facts, behind this kind of protection, there will be tax issues.

Because only if you pay the money, people will protect you!

Therefore, the U.S. tax agency requires that as long as the registered place is the U.S. company, no matter whether it earns profits in the U.S. or abroad, it needs to pay U.S. income tax!

Such a rigid requirement, of course, makes businessmen hate it.

Because the money earned overseas usually has to pay a tax in the country where it is located. If at this time, the US tax agency collects another income tax (usually calculated according to the 35% federal income tax), it is one income and taxed twice!

This is the so-called "double taxation" system.

It is said that the tax in the United States is high, but it does not mean that the local tax is high, but this hateful "double taxation".

Even if the film and cultural industries are given special treatment, there will be tax cuts. When the funds flow back to the United States, they only need to pay about 20% of the federal tax.

But it's still a pain in the ass!

According to the international common practice, the proportion of the film's accounting is 35% for the producer: 17% for the distributor: 48% for the theater.

In other words, even if a film is released overseas, it can usually get 52% of the box office share.

However, some countries have good protection of intellectual property rights, and the share of accounts is even higher, reaching 53%, or even 55%, which is higher than that of the United States; some countries are relatively backward, or have domestic protection, or special national conditions, and the share of accounts is lower. , such as 33%, 30%, 25%...even 15%.

On average, the overseas share of Hollywood movies is about 45%.

However, if the 45% of the split income flows back to the United States, it will have to pay about 20% of income tax.

In the end, the overseas box office share ratio that Hollywood film companies can get is about 45%*(1-20%)=36%.

"Spider-Man 2" grossed $1.29 billion worldwide and $730 million overseas.

If it is not deducted by the US federal tax, there will be 329 million US dollars in overseas distribution; once it is withheld, it can only be distributed to 260 million US dollars.

The tax department ate up a whole $60 million!

This is not counted, overseas DVD sales, overseas copyright sales, overseas peripheral product income, overseas vacation tourism income, etc., all have to encounter such problems.

Is there any problem solved?

Of course there is!

The capitalists have long thought of a way to deal with it.

Since the repatriation of funds is subject to tax deduction, the overseas branches of American companies simply do not remit this part of their income back to their parent companies in the United States.

This naturally avoids the trouble of "double taxation".

Therefore, in order to avoid paying high income taxes, American multinational companies generally choose to keep considerable overseas profits outside the United States.

For example, when Apple was at its peak, its cash flow was terribly large, nearly $270 billion!

However, in the case of huge cash flow, Apple still has to borrow money from banks or issue bonds when it makes big moves.

Why?

Because Apple has more than 260 billion US dollars of funds stored overseas in order to avoid taxes!

So is Apple, so is Google, and so is Microsoft!

According to statistics, for multinational companies listed on the US stock market, the proportion of US companies' overall overseas cash retention is as high as 65%.

Hollywood film companies, even including Disney, have insufficient cash flow and need overseas profits to maintain the operations of their parent companies. Coupled with the support of preferential tax rates, most of their overseas income must flow back to the mainland.

Of course, this is not the situation Dunn wants to see!

He wants to build a super big company that can rival Microsoft, Google, Apple, and Facebook in their heyday!

In the future, when Internet companies dominate the rankings of giant companies, Tang En's New Global Group can have a place!

Therefore, there must be a large enough basic frame!

In the future, the business of New Universal will develop, and the income from Blizzard, Universal Studios, overseas licensing of TV programs, overseas peripherals of movies, etc. will be a very scary figure.

It is impossible for Tang En to give the US government a commission for nothing.

Therefore, Tang En's second step in the strategic adjustment of the New Global Group is to find a country or region with "reasonable" taxation, establish an overseas headquarters, and hoard overseas income overseas!

With this money, we can better expand the overseas market. After all, the overseas market is much larger than the US domestic market.

If there is still too much money, you can wait for some special periods, such as the outbreak of the Iraq war, or when Trump comes to power, to reduce the "tariff" and then transfer overseas funds back to the United States.

Tang En looked at the more than 20 group executives in the conference room, feeling proud in his heart. Although there are many positions for heads of individual departments, there are still vacancies, including such important business departments as TV media and interactive entertainment.

However, seeing the bosses of Blizzard, Pixar, Mifflin Press, Netflix, Universal Pictures, Marvel Entertainment, USA Television Network and many other companies gather together and listen to his "teaching" is still an indescribable pride!

Next, Tang En talked about the development of the TV media department, and pointed out the high-quality content of STA TV network and the channel breadth of USA TV network. He also promised that when the time is right, he will very likely initiate an acquisition offer to NBC Television Network!

However, the person in charge of this department has not yet taken up his post, and Tang En is still trying to find a way to find talents from other companies, so he has not expanded on this topic.

The same is true for the next issue of tourism and vacation, but Tang En has already given instructions - vacation and tourism will be the focus of business development in the future!

Not only that, but they must immediately start negotiations with the Osaka City Government to buy back their 50% stake in Universal Studios Osaka.

In 2001, the revenue of Universal Studios Osaka exceeded 100 million US dollars; in the first three quarters of this year, the revenue has exceeded 90 million US dollars.

There is a lot of room for development in the Asian market!

Especially the mainland on the other side.

Hollywood has already spread rumors that Warner Bros. is negotiating with some companies such as China Film Group to jointly establish Hengdian Film and Television Group, and in Hengdian, it will become the world's largest film and television shooting base.

Warner has seen potential in China.

Tang En, of course he wouldn't miss it either!