Chapter 554 Lobbyists Visit

The management structure of New Global Group has been basically completed, and the specific business reorganization will be completed before February next year.

After Barry Diller and Robert Iger performed their duties, Twain also appointed several managers, Reed Hastings from Netflix, Dolby Jr. from Dolby Laboratories, Nicholas from Marvel Studios Anna Jacobson and Bob Chapek, who is in charge of travel and vacation, can report directly to him by leapfrogging.

This reflects the importance he attaches to these business segments.

Of course, his most important thing is the film and television entertainment business. Bill McNick and Ron Meyer can also report to him, and he has stipulated that every film and TV series with an investment of more than 100 million US dollars must be handled by him personally. Only after signing and reviewing can the project be approved.

Seeing that the end of the year is coming, many companies will choose to spend a lot of money and make a lot of investments at the end of the year in order to reduce profits and pay less taxes.

Twain has successively approved the approval of four big-budget films - "Spider-Man 3", "Pirate Alliance 2", "Harry Potter 3", and "Mechanical Enemy".

Worth mentioning is "Mechanical Enemy".

In the previous life, this film was produced and distributed by Twentieth Century Fox.

But in this life, Tang En's appearance changed the situation.

The producer and director of "Mechanical Enemy" Alex Proyas is an Australian who has made several low-budget films, and this is his first major production.

Because Tang En had a good relationship with the "Australian Gang", when Alex Proyas was looking for investment, he first thought of New Universal.

Regarding this project, Bill McNick and Ron Meyer also had some disputes. The latter thought it was too risky to invest $120 million in an Australian director to make a sci-fi action film!

In the end, the trouble went directly to the chairman's office, and Tang En made a final decision: "Vote!"

And personally called Will Smith and invited him to participate in the project of "Mechanical Public Enemy" as the leading role.

Will Smith had a falling out with Sony Pictures and was looking for a new partner. Hearing Tang En's call, he agreed directly without even asking about the specifics of the project.

There's no way, Twain has been prestige in the field of movies all these years!

None of the films he planned, directed, and produced were bad, and none failed at the box office!

In addition to the four films that were confirmed to be approved, Twain also used the "one-vote veto" to directly seal the monster movie "Van Helsing" that Universal Pictures had been preparing for two years.

As long as Twain is around, it is impossible to invest in this famous blockbuster that failed miserably.

However, Tang En did not want to waste the work of the production department of Universal Pictures under the leadership of Lon Meyer for the past two years, and had already notified that if other film companies were interested in the "Van Helsing" project, New Universal could sell it.

After all, Stephen Sommers, the producer and director of the "Van Helsing" project, is also quite well-known in the industry, having created the famous "Mummy" series.

On this day, Michael Ovitz from Legendary Films came to Tang En's office, holding a report, looking very happy.

"Have you made money?"

This is an old friend, Tang En was very enthusiastic and casual.

Michael Ovitz laughed and said, "Nothing can be hidden from you, just take a look!"

At the end of the year, many companies have year-end summary reports.

Tang En took a look, and couldn't help but his eyes lit up, he was very surprised, "Net profit... 270 million US dollars?"

Legendary's financial statements are complex, involving too many projects from too many companies.

Tang En didn't look at each one carefully, but only looked at the results. In the past year, Legendary Pictures made a net profit of 270 million US dollars, and the return on investment was as high as 21%!

"Ha ha!"

Michael Ovitz laughed heartily.

Tang En sincerely praised: "Amazing!"

Michael Ovitz's face was full of brilliance, and said: "As far as I know, the net profit is 270 million US dollars, even surpassing Paramount and Columbia Pictures. Needless to say, MGM has been in deficit year after year. Movie revenue, not even Disney, is as good as Legendary."

Last year, Legendary Pictures made a net profit of 90 million US dollars, with a return on investment of 12%, but that was the first calendar year after all, and it was just getting started.

This year is the second natural year, and Legendary Pictures has almost completed a big turnaround!

Since leaving CAA, Michael Ovitz hasn't been so beautiful for a long time.

Looking at the entire Hollywood, in terms of the income of the film industry alone, Legendary Pictures is second only to New Universal and Warner Bros.

At the beginning of last year, when Wall Street invested in Legendary Films, the valuation was as high as US$1 billion, but now? With an annual net profit of 270 million, the valuation of Legendary Pictures has already exceeded 3 billion!

In less than two years, the valuation of Legendary Pictures has tripled.

Such brilliant achievements, looking at the whole of Hollywood, only New Universal can compete with it.

Of course, the biggest credit is still Dunn Walker!

Everyone knows that the biggest foundation of Legendary Pictures' success is Tang En's "Assorted Platter Investment" and his initial investment of 100 million US dollars!

"The performance is very good, it's time to seek listing." Tang En hesitated, and said slowly, "When the economy goes down, the entertainment industry is usually relatively hot. Seeing that the Internet bubble crisis is about to pass, if you want to get such a It’s hard to get a good rate of return.”

Michael Ovitz raised his eyebrows, "You want to quit?"

Tang En owns 15% of the shares of Legendary Pictures, and he thought that Tang En was in a hurry to let Legendary Pictures go public and wanted to cash out and leave.

"Exit? No!" Tang En shook his head repeatedly, "The market needs to determine the relationship between supply and demand. Assortment investment has become so popular, it is impossible for Legendary Pictures to be the only film company in Hollywood that focuses on assortment investment."

After hearing this, Michael Ovitz nodded again and again, "Indeed, I have also heard that there is a lot of movement on Wall Street."

Tang En said: "So, it is foreseeable that in the next few years, Hollywood will spring up a lot of investment companies. If Legendary Pictures wants to take the lead, it must use a lot of funds to seize the market first. IPO financing is the best way .”

Michael Ovitz pondered for a long time, "Well, when I go back, I will hold a board meeting to discuss with everyone. But I came here today, mainly not to talk about this matter, but to send you materials."

"Material?"

"Aren't you fighting with Lei Shidong? I heard that he is going to use Blockbuster. Let me remind you."

"Bestcard? I don't care about it!"

"Don't be careless!"

Michael Ovitz took out a new material, handed it to Tang En, and said, "I compiled this myself. It is a confidential material. Only I can get it in Hollywood! Of course, it was a loss." Only with your platter investment plan can I get the detailed financial statements of so many film companies."

Tang En took a look, revealing a serious expression.

Sure enough, it is a very important material!

This is the details of the cash flow information for the global revenue of major US studios——

Revenue distribution in 1948: theaters: $6.9 billion, videotapes and discs: 0, pay TV: 0, public TV: 0, total revenue $6.9 billion;

Revenue distribution in 1980: theaters: $4.4 billion, video tapes and discs: $200 million, pay TV: $380 million, public TV: $326 million, total revenue $8.2 billion;

Revenue distribution in 1990: theaters: $4.9 billion, video tapes and discs: $5.87 billion, pay TV: $1.62 billion, public TV: $7.41 billion, total revenue $11.9 billion;

Revenue distribution in 2000: theaters: $5.87 billion, videotapes and discs: $11.67 billion, pay TV: $3.12 billion, public TV: $10.75 billion, total revenue $31.4 billion;

Revenue distribution in 2001: theaters: 6.32 billion US dollars, video tapes and DVDs: 13.75 billion US dollars, pay TV: 3.2 billion US dollars, public TV: 10.98 billion US dollars, with a total income of 34.25 billion US dollars.

Generally speaking, it is not difficult to obtain the old data ten years ago for this kind of material, but it is too difficult to obtain the latest data.

Fortunately, Michael Ovitz is in charge of Legendary Pictures, able to deal with major film companies, and able to obtain their true and accurate financial statements.

After seeing such a report, Tang En's first feeling was that the theater box office accounted for less and less revenue from movies. This is not counting the peripheral sales of consumer goods such as dolls and commercial advertisements. The income of these four traditional sectors and movie theaters has dropped to less than 20%.

Another point is that the income of public TV stations is getting higher and higher. The entire Hollywood, through public TV stations, earned 10.75 billion U.S. dollars last year!

This greatly increased Tang En's interest in the public television network.

It seems that the sooner the acquisition of NBC, the better!

Only the combination of this kind of film company and public TV network can better internal transactions, control income, and reduce taxes.

However, Michael Ovitz is concerned about the income of video tapes and DVDs. He said: "Last year, Hollywood received a total of 13.75 billion US dollars through the sale and lease of video tapes and DVDs. Among them, 35% were obtained in the rental market. And this 80% of the 35% rental market revenue comes from Blockbuster!"

Tang En laughed a few times, "Michael, aren't you scaring me? Do you really think I'm afraid of Lei Shidong?"

Michael Ovitz said in a deep voice: "Starting next year, the platter investment cooperation between Legendary Pictures and Paramount will be cancelled. But with three consecutive waves of strong suppression, you have to be careful of Redstone's counterattack. "

First, "American Idol" switched to ABC, then cooperated with Disney to encircle Paramount's films, and ordered Legendary Pictures to cancel the platter investment cooperation with Paramount.

It's no wonder that Lei Shidong can bear it!

In the current film market, the rental of DVDs and video tapes is a major source of income!

Coincidentally, Blockbuster controlled by Redstone is the leader in this industry.

Michael Ovitz's concerns are not unreasonable.

There was an indifferent sneer on the corner of Tang En's mouth, "When I was still a small person, I dared to lead Tang En Pictures to challenge 20th Century Fox and Disney. Now, I have New Universal, and partners such as Legendary Pictures and Disney , in the face of Viacom, how can you give up? Hmph! Even if he monopolizes the rental market, so what?"

"Twain..."

Michael Ovitz was a little anxious. As a Jew, he knew how powerful Redstone was.

Tang En waved his hand, interrupted his words, and said in a deep voice: "Okay, Michael, you don't need to talk! He is honest and honest. If he really dares to demonstrate, then I will come with him with real swords and guns." A big battle!"

Michael Ovitz sighed, very helpless.

He was entrusted by a friend to come here today to act as a lobbyist.

He knew that Tang En's temper was very stubborn.

But I didn't expect Tang En to refuse so simply!