hollywood billionaire

Chapter 106 Rotten Appetizers and Big Bones

Author: TrojanRW

Chapter 106 Rotten Appetizers and Big Bones

Who will dare to touch "Blade Runner 2049" when returning in 2023?

It's not the worst failure in Hollywood history, but it deserves a place on the list.

Han Yi held his chin up and listened carefully to the exchanges on both sides of the conference table while silently complaining in his heart.

"Please describe the project in detail."

Jordan Bromley glanced down at the information and said. Although all the details are in the prepared documents, it is also a competitive strategy to make the negotiating opponents lose their energy or become exhausted during the lengthy introduction.

"Alcon Pictures reached a co-financing agreement with us. They invested US$90 million and we invested US$90 million. They asked Warner to be responsible for domestic distribution, and Sony was responsible for overseas distribution. Therefore, our box office share in North America will be divided

Less, more overseas."

This cooperation model is quite similar to "Nine".

Han Yi couldn't help but recall that night in the private cinema.

"In addition, the Hungarian government has agreed to give us a very favorable tax exemption and refund policy. Since the entire movie will be shot in Budapest, we should be able to save a lot of budget in terms of tax."

"About how much?"

"About 15% of the budget, which is about US$27 million, this tax will be returned to us in full. The actual production budget should be between US$150-160 million, so we can also say that from the beginning, the two

Each investor gets a guaranteed return of 15%.”

"Estimated P&A expenses?"

"At least US$75 million is expected to be invested. Depending on the actual situation, it may fluctuate between US$60 million and US$150 million... mainly depends on the film's global commercial performance."

75 million?

It should be more than that.

Han Yi was doing calculations on his notebook.

He still remembered that Alcon Pictures announced that it had suffered a huge loss of US$80 million after the film was released.

The domestic box office of "Blade Runner 2049" is approximately US$92 million.

Based on a production cost of US$150 million, Alcon Pictures will be responsible for an investment of US$75 million.

So, using the simplest and crudest calculation method, all local income belongs to Alcon Pictures, and all overseas income belongs to Sony Pictures. Then from the box office of 92 million US dollars, Alcon Pictures can recover about half, that is,

$46 million.

Subtracting the investment, the loss here was US$29 million.

In other words, Alcon also lost US$51 million in terms of promotion, distribution and actor sharing. So, it can be seen that, without counting the box office share of the starring actors, the P&A expenses invested in "Blade Runner 2049" should finally be

Around 120 million.

The actual total cost of the entire project is 270 million.

The global box office was 267 million, and nearly half of it, 133.5 million, fell into the hands of the producers.

The net loss was 136.5 million U.S. dollars. Since Alcon suffered a loss of 80 million U.S. dollars, Sony should have a loss of about 56.5 million U.S. dollars.

This is the simplest calculation method. If both parties share the P&A costs equally, then each company will have to pay 135 million.

Lost 41.8%.

If you pay 25% of the production cost, which is 18.75 million, then what you can get back in the end...is 10.9125 million US dollars.

It seems like you didn’t lose that much?

Although Alcon will never take a penny from the overseas box office like the calculation formula above, Sony Pictures' actual loss will definitely be higher than 56.5 million, but similarly, the income from VOD, streaming media and TV broadcasts will also

Not included. Generally speaking, the loss range should not be far from Han Yi's estimate.

With a loss of US$7.84 million, there are opportunities to enter "Jumanji" and other film and television projects.

It seems acceptable.

After all, if you can get 50% of the investment share of "Game of the Brave", based on the box office performance of the previous life, you can have at least a 246% return on investment.

Han Yi gradually began to understand why investment institutions were willing to take on projects that were obviously difficult to make money.

Only after eating the omelette that you know is burnt can you wait for the cream cake that will be served later.

Isn’t that what I am now? It will take more than 400 million U.S. dollars at the box office to even tie "Blade Runner 2049"...

I actually got a little tempted.

"In terms of the sharing of various types of income, we hope to know the specific distribution ratio."

"Overseas revenue is 66.67% for Sony, 33.33% for Alcon, and the opposite is true for local revenue. In addition, non-theatrical box office revenue is also distributed by both parties based on the regional source of revenue."

Hearing this, Han Yi glanced at Kevin Hart and pushed his notebook in front of him.

Kevin Hart has decided to put all 25 million U.S. dollars of investment into the slate deal. Based on their expected total investment of 100 million U.S. dollars, Hartbeat will need to bear a 25% loss.

The loss of US$1.96 million, as Kevin Hart said, can be earned back with a few talk show tours.

In fact, after finishing the discussion on the investment case of Sony Pictures this morning, he will fly to Charlotte immediately and bring a whole night of joy to 13,000 people at Time Warner Cable Arena on time at 8:30.

This one performance alone grossed US$1.41 million at the box office.

By co-investing in Sony Pictures' slate deal, Kevin Hart not only has Han Yi's capital backing, but also has his own comedy appeal as a backing.

Throughout 2016, of the US$85 million in acting income that Kevin Hart created, US$70 million was obtained from talk show tours. Therefore, no matter how much he lost, Kevin was able to help himself and Han Yi earn back.

When the time comes, just use Hartbeat instead of Laugh Out Loud to cast a few talk shows.

Thinking of this, Kevin Hart nodded to Han Yi.

After responding with a smile, Han Yi rapped his knuckles on the conference table a few times in a seemingly random and chaotic rhythm.

"Okay, then, we have initially confirmed that we are willing to bear 25% of Sony Pictures' investment in "Blade Runner 2049" in accordance with the mentioned structure, method and proportion. This can be recorded."

Jordan Bromley motioned to the paralegal to take notes, and paused for a moment before continuing.

"However, we also need to select another film that we like."

"I thought "Jumanji" was the movie you liked." Philip Rowley looked at Han Yi, then at Kevin Hart, and laughed hoarsely.

"'Jumanji' is a film that my client wanted to be deeply involved in the production process." Jordan Bromley corrected the other party with a smile, "The reason why we invested and wanted to get the rights to participate in the creative decision-making is because it is related to

Mr. Hart's acting career. Mr. Hart's career is very important to Mr. Hart himself and to Mr. Han. Our investment considerations go beyond the project itself."

"So, Mr. Bromley." Natasha Azava and Jordan Bromley faced off, "Tell me, which of my client's projects is the high-quality resource you dream of?"

Philip Rowley and Han Yi turned sideways at the same time and looked at their respective attorneys leisurely.

Everyone knows that this is a negotiation drama staged by the two senior partners of Manate Entertainment in tacit cooperation, but it is really good-looking.

"I won't talk about high-quality resources. For investment, I will only use the expression 'valuable goals'."

Jordan Bromley flipped through the pile of documents and said.

"We understand that you are currently working on "Hotel Transylvania 3."

"'Hotel Transylvania 2' is the first-day box office record holder for films released in September." Natasha Azava smiled and shook her head, "At the same time, it is also the box office record holder for animated films under Sony Pictures.

...Our funding will give priority to ensuring the production of this movie. In fact, its priority is higher than "Spider-Man"."

"You have to throw in some small bones, Natasha." Jordan Bromley leaned back in his seat and spread his hands, "If you want us to give you a nine-figure offer."

"This is no small bone, Jordan." Natasha Azava refused to give in. "You know this is the biggest and most delicious T-Bone."

"Hotel Transylvania 1", released in 2012, had a production cost of 85 million and a global box office total of 358 million. The second film released last year had a production cost of 5 million lower, but the box office revenue reached 475 million US dollars.

This kind of animated film brand that has already established itself in the market and has a loyal audience of teenagers and children is a real cash cow for any film company.

"But you also have to know that we came to this restaurant just for the T-bone." Jordan poked his index finger on the table, "We bought the $300 tasting menu and endured the lengthy appetizers just for the main course.

Being able to have a 22-ounce T-bone, or a rib-eye, or whatever steak you have."

"We - want - meat."

Jordan Bromley leaned forward, glanced at Philip Rowley, and then continued to look at Natasha Azava.

"No Entrée, no tips. You can't expect us to invest $100 million without any incentives. Give us what we want or we'll leave, including an offer to film the movie "Jumanji"

.”

"There will be the main course." Natasha Azava tilted her head and narrowed her eyes slightly, "But I still have to eat the appetizer."

"Emoji Fantasy Adventure."

This appetizer is quite unpleasant.

Han Yi subconsciously touched Renzhong to cover up his sigh.

This movie, which cost US$50 million to produce, was actually a big gamble by Sony Pictures. In 2011, Apple added a built-in Emoji keyboard to their iOS system, which started the Japanese emoticon pack that came out in 1997.

It is popular around the world. In 2015, Sony Pictures defeated Warner Bros. and Paramount and obtained the rights to adapt Emoji animated movies. At this time, four years have passed since the popularity in 2011.

What's even more exaggerated is that as an animated film, the production cycle of "Emoji Fantasy Adventure" is as long as two years. It was originally a topical film to catch up with the current trend, but it was delayed to mid-2017. Many people were worried about the film.

Due to new technological trends, it will lead to the embarrassing situation of being outdated before release.

And why did this animation take so long to make?

It has nothing to do with whether the production team procrastinates or not. The main reason is still the same. Sony Pictures has no money and cannot afford to lose money. The two big financiers, Lone Star and Citigroup, also ran away with their sister-in-law.

The project was established in September 2015 and production began. The first dubbing actor was signed in July 2016, and the following dubbing stars did not sign contracts until October. The delay of "Emoji Fantasy Adventure" is mostly due to embarrassment.

caused by finance.

Of course, judging from the quality of the film and the final reviews it received, it wouldn't be a bad thing for it to be released later.

If you come out one day later, you will be scolded one day less.

There are 134 professional reviews on Rotten Tomatoes, with an approval rating of only 6%. Five days after its release, the most widely circulated news about this movie was published by Entertainment Weekly reporter Christopher Rosen, with the title "Due to this positive review, "The Expression"

"Adventure" lost its 0% Rotten Tomatoes rating.

The overwhelming negative reviews caused "Emoji Fantasy Adventure" to lose a large number of potential audiences. Of course, it also attracted a group of curiosity lovers. The final global box office was set at 218 million U.S. dollars. For a film that cost half a billion, it was announced that

For an animation that relies entirely on negative reviews, it's enough for Sony Pictures to make a small fortune.

However, Sony Pictures did not know these things in May 2016. The lagging production schedule, as well as the poor script and mid-term quality currently displayed, have caused the group's confidence in this project to drop sharply.

Now Sony Pictures is in desperate need of someone who can help them pick up the slack.

"Guarantee 50% of the investment amount in "Emoji Fantasy Adventure" in exchange for 20% of "Hotel Transylvania 3"."

"30%:30%." Jordan Bromley opened his mouth and paid an outrageous price.

"50%:25%."

"40%:25%."

"Jordan, we insist on 50% of the investment amount." Manat Entertainment's lawyers are all stubborn in the same mold. "Opening up the investment share of "Hotel Transylvania 3" is already a huge loss for us."

"If we can do 50%:25%..."

Han Yi took over the conversation at the right time.

"Then, I can guarantee that "Emoji Fantasy Adventure" can get 25 million US dollars in production funds. In addition, if you are willing, I can get another 10%-15% of the investment share to help this animation be released as scheduled."

"But I have two requests, two very reasonable requests, that is, if we become the main investor in "Emoji Fantasy Adventure", then..."

"First, I hope we can have a certain say in the specific arrangements for dubbing actors."

"Second, I know that you have another project that is seeking financial support. Two or three months ago, you contacted Ma...Qiaodan, hoping to let them promote financing matters. I also want to add this project to the slate deal

There are five movies, and the total investment amount is 130 million, which is 30% higher than our previous psychological expectations."

"Which movie are you talking about, Mr. Han?"

Although he already had the answer in his mind, Philip Rowley still chose to ask this question.

Some things can be tacitly stated, but some things are better stated clearly, especially during negotiations.

"What I'm talking about is, this one you collaborated with Marvel on..."

Han Yi turned to the last few pages of the document and pointed to the bold words at the top.

""venom"."

"I know you need an investor to cover one-third of the production costs."

"And that'll be us."

We have prepared a map for everyone! You can take a look!

(End of chapter)