Reborn Xiangjiang as a Tycoon

Chapter 654 The development of Blockbuster, eyeing United Artists (two-in-one)

On Friday morning the next day, Lin Baicheng went to Morning Star Pictures.

"Chairman!" "Good morning, Chairman!".

This is not the first time Lin Baicheng has come here. The employees greeted him one after another when they saw him.

Even new employees who have just joined the company in the past few months will be asked to remember the appearance of the big boss and have seen Lin Baicheng's photo, so he will not be blocked at the door or blocked by security guards when the big boss comes to his company.

It's because the employees don't know him.

"Yeah!" "Good morning!"

Lin Baicheng greeted him all the way into the elevator. The person who originally entered the elevator had already walked out, and he was not polite when he saw it.

Lin Baicheng brought his personal secretary and bodyguard to the executive office floor.

"Chairman!"

When Lin Baicheng came to the door of the office, the secretary he arranged to work at Morning Star Pictures immediately said hello after seeing him.

"Call Lansing over."

Lin Baicheng said to her and walked into the office.

The two bodyguards followed him into the office and took a look before walking out. Catherine, the private secretary, was working in the secretarial room outside.

Not long after, Shirley Lansing came over.

Catherine then brought two cups of coffee in and then went out.

"How are the negotiations going on with the Home Alone creative team's contract?"

Lin Baicheng asked aloud, if the first movie was a hit, a sequel would definitely be made, and he would not struggle with the money. However, as he had worried before, the entire creative team asked for a salary increase, and Morning Star Pictures naturally wanted to follow the lead.

The team has negotiated, and it is impossible to give them whatever increase they ask for.

"The only thing left now is Cameron. The company is still negotiating with his agent Michael Ovitz."

Shirley Lansing went on to say: "Cameron Atlanta joined the CAA agency. CAA was established in 1975, and its founder was Cameron's agent Michael Ovitz.

Although the salary offered by Ovitz is relatively high, it is still within a reasonable range. However, the lower the salary offered by Cameron, the better, so the company is still negotiating with Ovitz."

Lin Baicheng nodded: "So, how much will the cost of this shooting be?"

"The estimated shooting cost is US$45 million, mainly due to the substantial increase in the salary of the creative team. However, the company is negotiating with some companies for advertising placement. Based on the box office of the first Home Alone film, the advertising placement for the next two films will be recovered.

Five million dollars is still no problem.”

This time, the second and third parts of Home Alone were filmed together, so the production cost was so high.

Of the US$45 million production cost, the total salary of the actors, director and behind-the-scenes team alone is about US$15 million, and one-third of the salary for the third part will be paid after the release of the third part, which is not included in this calculation.

Out of $15 million.

What’s more, the main actors and directors will also share in the U.S. box office profits of the third film, but fortunately the base is not large.

Lin Baicheng reminded aloud: "The placement of advertisements must be appropriate. Don't have too many product placements that will affect the movie itself."

"You can rest assured that the producer and director will do a good job in reviewing it." Shirley Lansing nodded to express her understanding.

Lin Baicheng added: "For implanted advertisements, don't forget your own company's products, such as Xingyue console, Rubik's cube, yo-yo, claw machine, etc., they can all appear appropriately in the movie. By the way, the company where these toys are located

, have you taken the initiative to contact Morningstar Pictures?"

Shirley Lansing nodded and said: "Yes, these companies have contacted the company, and related products will appear in the movie."

"That's pretty much it."

Lin Baicheng was slightly satisfied after hearing this. It should be that he, the big boss, did not think about many things but the subordinates did, instead of urging the subordinates to do what he did. If that were the case, how could he be so busy alone?

And what else would such a useless manager do?

"All advertisements placed by the company will be charged, which is nothing more than a discounted price. I have already said this, so I believe you don't need to remind me repeatedly."

Shirley Lansing immediately said: "Chairman, please rest assured that the company and other enterprises are cooperating in accordance with normal business dealings."

The reason for doing this is because some companies are 100% owned by Lin Baicheng, and some companies only hold a part of the shares, and there are running accounts of revenue and expenditure between companies so that there will be no problems.

Furthermore, the revenue and profit of each company is also related to the dividends and bonuses of executives and employees. These are very important to employees. If they are not calculated clearly, they will dampen the enthusiasm of employees.

To put it more realistically, even if it is a brother company, if there is no benefit every time the help is provided, the company will be demotivated from top to bottom, so the efficiency of work can be imagined.

This is not only true for Morningstar Pictures and other companies, but also for every company under Lin Baicheng's name. Even the capital transactions between subsidiaries within the group are carried out in accordance with normal business cooperation. It is nothing more than what your own company will do.

Just give me a discounted price.

"If the company's funds are not enough, we will take out the loan. You will make a report and I will sign it."

The reason why Lin Baicheng said this is because this time the second and third parts of Home Alone are no longer solely owned by him, but jointly invested by him and Morningstar Pictures. The investment ratio is 30:70, and Lin Baicheng only needs to invest 30%

Funds are enough, but in terms of profit distribution, it is an even distribution of 50-50, which is considered a more beneficial cooperation method for Lin Baicheng.

However, after this cooperation, all the copyrights of Home Alone will automatically belong to Morningstar Pictures. Therefore, as long as the second and third parts of Home Alone continue to sell well, Morningstar Pictures will not only not lose money, but also make a profit.

The copyright of a blockbuster movie series is very valuable. Not only can you continue to make sequels, but you can also make money through video tapes and other various licensing.

In the long run, in the future era of DVDs and Internet video websites, copyrights can still be used to continue to make money.

Morningstar Pictures and Lin Baicheng only invested US$50 million. With this money, they acquired three film companies, established distribution channels, and invested in film production. Last year, they even invested in the subsidiary Blockbuster, so the expenditure was huge.

Although the company's profits are positive, and the movies it invests in are generally profitable, and the distribution of Home Alone is a huge profit, the money back in the movie industry is not that fast, and Morningstar Pictures simply can't get out more than 30 million now.

Dollar.

Even if the more than 30 million US dollars does not need to be spent immediately at once, after the crew decides to start filming, at least more than 10 million US dollars will be spent in the early stage. Part of the actors' remuneration must be paid in advance, and advance preparations for the filming will also cost money.

Shirley Lansing said: "Chairman, if you don't say anything, I will mention this matter to you in a while. The company will probably need a loan. If the company needs a loan, I will apply to you.

of."

"Just make sure you know what's going on."

Lin Baicheng nodded when he heard this, and then asked: "How is the recent development of Blockbuster?"

"It has started to get on the right track, and many stores have already made profits."

Shirley Lansing replied and took the initiative: "Currently, Blockbuster's stores have basically covered Los Angeles and New York. Next, Blockbuster will expand to other cities in California, taking the form of flagship stores and franchisees.

Form management.”

Morningstar Pictures invested $10 million in Blockbuster. Because of this, the parent company is not rich in cash.

"Chairman, according to what you said, the flagship store will be purchased and operated by itself. Therefore, Blockbuster's investment is relatively large. The company's investment of 10 million US dollars has only about 1 million US dollars left. This is because the payment for the video tape can be deferred.

Pay, otherwise Blockbuster will run out of funds."

"Blockbuster's business model requires too much capital, and Morningstar Pictures simply cannot support it. Once Blockbuster begins to expand to other cities in California, it will inevitably require a large amount of capital, not to mention subsequent expansion across the United States.

Already."

Shirley Lansing explained the difficulties. In fact, she was not in favor of the business model of owning a flagship store and buying a store. She thought it was better to rent a store, which would not require too much capital and the company could expand more quickly.

However, Lin Baicheng was the big boss and he insisted on it. After the persuasion failed, Shirley Lansing had no other choice but to execute it.

"Morningstar Pictures should stop investing in Blockbuster."

After hearing this, Lin Baicheng thought for a while and said: "Since Blockbuster doesn't have much money now, let Blockbuster do the financing. I will find a partner for Blockbuster."

This is true, but Lin Baicheng will not find investors for Blockbuster for the time being. Instead, he will invest money himself, but it will no longer be financing in his own name, but overseas offshore companies and funds. In this way, he

My true shareholding ratio can be hidden.

The amount of financing this time will not be too large. The funds raised will be enough for Blockbuster to expand its stores to the entire state of California. If it lacks money later, it will really need to find venture capital or Wall Street financing.

Blockbuster is definitely going to be listed, so it is necessary to cooperate with Wall Street capital. Cooperating with Wall Street capital before going public can allow Wall Street capital to get more benefits, so that Wall Street capital will be more interested in Blockbuster.

Instead of choosing to invest in other small companies of the same type after seeing that Blockbuster is developing well.

Although Blockbuster has no competitors yet, Lin Baicheng is sure that once Blockbuster covers California, there will definitely be companies that follow suit, and competitors will appear even before it covers the entire state of California.

Any industry that makes money will never lack followers.

Make money, business, not shabby!

"Yes, I will notify Manager Kilman in advance."

The Kilman manager Shirley Lansing refers to is none other than Blockbuster manager Errol Kilman.

As for Shirley Lansing herself, she is now the president of Morningstar Pictures, which is a promotion in disguise.

Although presidents and managers are essentially the same, they are somewhat different.

There are dozens of people in a company, and when there are not many departments, the department leaders are usually called supervisors, and the top leader is manager; but once the company develops and grows, the number of people gradually increases, and a department is divided into several small departments, then the department

The leader's title becomes manager, and the top leader becomes general manager.

When an enterprise develops to the point where it establishes a subsidiary company, because the subsidiary company also has the relationship of general manager, the title of the top leader of the parent company becomes president.

"It's up to you."

Lin Baicheng was about to end the conversation when he suddenly remembered: "At United Artists, please ask someone to check to see if there is a movie with the word 'Paradise' in it.

"

The reason why Lin Baicheng asked this was because he knew that when United Artists just entered the 1980s, it went bankrupt because of a movie and was eventually acquired by MGM.

As for the movie that bankrupted United Artists, he only remembered the word "heaven", which meant sending United Artists to heaven, otherwise he might not have remembered it.

The main reason for asking about this matter was that Lin Baicheng wanted to know the specific time when Lian Artists went bankrupt, and then purchased Lian Artists. Although Lian Artists is not comparable to the other seven, it has been established for more than 60 years, and the company's film library must be very large.

The film copyright, after acquisition, can supplement the shortcomings of Morningstar Pictures.

"Chairman, you are talking about the Gate of Heaven, right?"

Shirley Lansing said immediately after hearing this.

"Tell me briefly, especially the production cost of this film, do you know?"

Lin Baicheng was moved when he heard this. Whether it is this movie or not, you will know by looking at its production cost.

"Know."

Shirley Lansing nodded and said: "Heaven's Gate was directed by Michael Cimino, the winner of the 51st Academy Award for Best Director last year. Last year, United Artists invested heavily in the film. It is said that the external investment was as high as 40 million.

A large-scale production worth US$ 40 million. However, although United Artists advertised an investment of US$ 40 million, the real investment may not be that much, but US$ 30 million is definitely there. Only United Artists insiders know the specific figure.”

"Take a middle number and calculate it to be 35 million US dollars. This investment is indeed not low."

Lin Baicheng couldn't help but nodded slightly. He knew that this movie should have bankrupted United Artists. This was a big investment. The production cost of one film was almost as much as the two sequels of Home Alone, and this was after the salary of the main creative team increased significantly.

Head of house.

In other words, when the first film was filmed, the production cost of Home Alone was only US$8 million. Heaven's Gate can be worth the cost of four Home Alone films, which is not a big production.

"The movie that was shot last year should be finished this year, and it will be released either this year or next year. Lansing, please remember to pay attention to the movie Heaven's Gate. When it is released, remember to tell me."

If you want to acquire United Artists, you must wait until Lian Artists goes bankrupt before taking action. Also, Lin Baicheng does not have to acquire United Artists. If United Artists is willing to give up most of its shares or sell its film library, he can accept it. Anyway, he

The acquisition of United Artists was only for United Artists' film library.

"Okay, Chairman."

Shirley Lansing couldn't help but feel a little confused after hearing this. For a moment, she couldn't figure out why Lin Baicheng paid attention to the movie Heaven's Gate produced by United Artists.

Lin Baicheng did not explain, there is no need to say too much now.

Afterwards, the two chatted about the company's script library and distribution channels. After chatting for more than an hour, Lin Baicheng asked Shirley Lansing to leave.

Lin Baicheng did not leave the company immediately, but stayed at Morningstar Pictures to work.

(End of chapter)