Bab 139: Chapter 139: "Rain Man" Finalized
Simon Westeros and Robert Golvin reached a deal, and Westeros Corporation received the $30 million earnest money from the other party that very night.
According to the agreement price of $70 per share, the total value of 4.13 million shares was close to $290 million. Including the previously sold 570,000 shares, Westeros Corporation ultimately recouped over $320 million after liquidating its Motorola shares.
That same evening, Motorola eagerly announced the repurchase of shares from Westeros Corporation. However, the company's stock price inevitably fell below $60 the next day. In the following days, the media continued to buzz with comments about the transaction, but Simon had already put Motorola out of his mind.
Considering the initial investment of about $250 million, recouping over $320 million in just over two months was undoubtedly a huge profit.
At the same time, Simon also initiated the acquisition of New World Entertainment.
To minimize acquisition costs, James Rebould devised a strategy of first absorbing enough shares from the market at a low price before making a public offer. The early buying process, which took two weeks, didn't require Simon's direct oversight, and he returned to Los Angeles after New Year's Day.
The year officially entered 1988.
On the Hollywood front.
Robin Williams' "Good Morning, Vietnam," released in a very limited opening on four screens on December 25, quickly garnered unanimous praise from North American film critics. Hollywood's authoritative "Variety" magazine praised the film as 'an exhilarating cinematic journey,' and Robin Williams' performance sparked a strong reaction.
Although not yet widely released, the success of "Good Morning, Vietnam" was anticipated, and Daenerys Entertainment would certainly not let the other party sign the "Dead Poets Society" movie contract at a low price.
However.
What Simon cared about most was "Rain Man."
After their initial meeting, the chairman of United American, Tony Tomopoulos, asked Simon to personally discuss the film collaboration after Christmas. Simon did not return to Los Angeles until after New Year's, so that discussion was naturally delayed.
During this time, Simon also learned that Michael Ovitz had once again recommended the project to Michael Eisner, hoping for a collaboration between Disney and United American, but it led nowhere.
After inquiring about the details of the meeting with Amy on the day, Simon roughly understood why Robin Williams suddenly changed his mind and the reasons behind Ovitz's renewed recommendation of "Rain Man" to Eisner.
However, Simon's influence had not yet reached the level of Spielberg, where his interest in a project would cause intense attention and even scrambling among others. Eisner, a Disney helmsman with no shortage of personal judgment, naturally would not invest in a film the entire Hollywood was not optimistic about just because of Simon's potential interest.
Tomopoulos wanted to talk personally with Simon, but Simon had not returned, and was instead making a large sum of money on Wall Street.
After some deliberation, United American still dared not undertake the project alone, and things dragged past New Year's Day. Daenerys Entertainment appeared very calm, but Tomopoulos could not hold back and took the initiative to call Amy.
Before Simon returned, Amy and Tomopoulos negotiated for two days and finally came up with a rough collaboration plan.
United American sold the rights to "Rain Man" and "The Hobbit" to Daenerys Entertainment for $2 million. "Rain Man" was to be produced solely by Daenerys Entertainment, while MGM-United American obtained the full distribution rights for "Rain Man" in North America's domestic cinemas, video tapes, and television broadcasts, with Daenerys Entertainment retaining the overseas distribution rights.
Other details included MGM-United American ensuring a guaranteed release on 1,000 screens on December 16, with Daenerys Entertainment bearing the cost of publicity for "Rain Man." MGM-United American would receive 15% of the North American box office as a distribution commission.
In short, this was a contract very much in favor of MGM-United American.
United American would not have to invest any costs but could obtain 15% of the net proceeds from the North American box office of "Rain Man," which featured two A-list stars, Tom Cruise and Dustin Hoffman, and a guaranteed hot Christmas release date on December 16. Even if the film were to flop, scamming $10 to $20 million from the audience was still feasible.
Moreover, the subsequent distribution of video tapes and television broadcasts, United American also insisted on a revenue-sharing agency, once again reserving 'operation' space for future distribution activities.
At the MGM headquarters in Beverly Hills.
Tony Tomopoulos signed his name on the contract, looked up at Simon Westeros, who was signing across the conference table. Even though he still felt something was off, there was a hint of seeing easy prey in his eyes.
However.
Tomopoulos also didn't know if this was just self-consolation.
As a
veteran producer who had been in Hollywood for decades, Tomopoulos did not lack intuition in film.
After the Christmas meeting with Amy, Tomopoulos had considered completely cutting off Daenerys Entertainment and producing "Rain Man" alone. However, when he discussed the project with MGM-United American's owner, Kirk Kerkorian, it was directly rejected.
United American simply did not have enough funds on hand to produce "Rain Man" alone; the company would have had to resort to financing through copyright pre-sales and bank loans.
With the entire Hollywood not optimistic about the project, United American could not possibly get much pre-sale money from cinema operators. Thus, most of the film's production budget would have to be obtained through loans. Including future distribution investments, United American would have to shoulder at least $20 million in debt.
$20 million might not be much for the now wealthy Simon Westeros, but it was a risk too great for United American. If the project failed, the United American brand could once again sink into obscurity.
After the signing ceremony and a simple luncheon, Simon and his party left Beverly Hills to return to Santa Monica.
Inside Simon's SUV.
Amy looked at Simon, who was reviewing the contract, and said, "Regarding 'Charlie's Angels,' Columbia Pictures is sticking to $7 million and won't lower the price. Simon, if you think it's okay, we can sign the contract tomorrow."
In Simon's memory, Drew Barrymore, who had previously acquired the TV rights to "Charlie's Angels" before the film's release, easily made $120 million through TV reruns and DVD distributions after the film was released.
$7 million, while seen as an outrageously high price by many, did not seem too high to Simon: "Let's sign it. Also, contact Warner Bros about the 'Batman' issue, as well as Alexander Salkind regarding the 'Superman' rights."
Amy was somewhat puzzled: "Aren't you planning to buy DC?"
Simon shook his head resignedly and said, "When I was in New York, I contacted Steve Ross to discuss this in person, but I was directly rejected over the phone. I even made an offer to Ross, but got no response."
Steve Ross was the chairman and CEO of Warner Bros, controlling the entire Warner system, of which Warner Bros Pictures was just a part. Warner had not yet merged with Time, but the two had already started negotiations last year.
Amy asked further, "So how should we handle this?"
After thinking for a moment, Simon said, "Start by contacting Warner, try to get the rights to 'Batman,' even if only half. But make sure Daenerys Entertainment fully controls the project. Secure 'Batman,' then you can approach Alexander Salkind about 'Superman.' Even if it costs us, we need to snatch the 'Superman' rights. Oh, and 'Wonder Woman' too, grab the rights to this female superhero while you're at it."
Batman, Superman, Wonder Woman.
If he could secure the rights to these three giants of the DC cinematic universe, he would essentially have control over the entire DC.
Listening to Simon's somewhat excited tone, Amy laughed and said, "What about 'The Flash'?"
Simon paused, then sobered up and smiled wryly, "Warner isn't stupid. For now, just make sure you secure 'Batman.' That's the most important thing; don't mention the others yet."
___________________
Read Ahead
Patreon.com/INNIT
Status Power Mingguan
-- Peringkat
Power 
-- Power
stone