章 128: Chapter 128: Waiting Game
In the early morning, at the Capet Mansion, Charles Capet, dressed and ready for work, leaned down to kiss Scarlett Johansson, who was still lying in bed.
"Darling, I'm heading to the office!"
Still half-asleep, Scarlett responded by wrapping her arms around Charles's neck and returning the kiss before letting go, "Alright, I'll book a table for dinner tonight. Meet me after work!"
"Okay!" Before Charles left, he took the opportunity to enjoy a few more moments with her.
Capet Pictures' New York City office on Manhattan Island was fully operational. They managed several divisions including Capet Pictures, Matrix Pictures, Capet Family Entertainment, Capet Television, and Capet Investments.
"Hey, sweetheart, no day off today?" Charles asked as he walked into the office and hugged Dona Williams.
Dona initiated a kiss, explaining after a moment, "The Facebook equity transfer agreement is signed. I've set up a team to help YouTube form their company, so I don't need to be there anymore."
Owning 5% of Facebook shares and 40% of YouTube shares was excellent, even if they got diluted later, it was fine. Charles remembered that YouTube would soon be acquired by Google for cash, bringing in another significant cash flow.
"Oh, by the way, Mrs. Depp is worried about our current cash flow. We have a lot of projects slated for the next two years," Charles said.
Annie Depp, the Chief Financial Officer hired by Capet Pictures, was formerly a partner at an accounting firm in Los Angeles.
"Didn't Annie say we could get a huge line of credit from Wall Street investment firms? Even if we have to convert debt to equity later, it's fine," Charles said, confident in Capet Pictures' momentum. Movie revenues were promising, and banks would eagerly lend money.
"Mrs. Depp is discussing this with Wall Street, specifically with First Credit Suisse Boston and Merrill Lynch banks, to issue convertible bonds as our fund for future operations," Dona responded.
Charles nodded, "This year's self-produced films are low-budget. Wedding Crashers and Mr. & Mrs. Smith are under distribution contracts with Universal."
"The concern is next year's films. Except for the contracted film The Departed, we have to manage all others by ourselves, which is a substantial production and distribution budget," Dona said.
The Pursuit of Happiness, The Da Vinci Code, and 300 were planned for next year, and Charles also aimed to start developing The Devil Wears Prada this year.
"Mrs. Depp said at least $200 million in cash is needed as reserve capital. But she will try to extend that limit as much as possible," Dona added.
"More, the better. Saw II has grossed $90 million domestically and $65 million overseas. We are looking at roughly $50 million in cash returns from its box office," Charles smiled.
"Plus, DVDs and TV sales, the home video rights from the first film have already surpassed $100 million. Our cash flow is quite healthy. Once Wedding Crashers and Mr. & Mrs. Smith hit theaters, more big returns will come in." Charles stated confidently.
"Boss, are you thinking what I'm thinking?" Dona seemed to catch on.
"Exactly. Didn't I ask you to keep an eye on Marvel? This year, I plan to purchase Marvel with cash," Charles said, knowing Marvel's internal instability very well. Majority shareholder Ike Perlmutter and second major shareholder Avi Arad were at a complete standoff.
Avi Arad wanted Marvel Studios to develop their own movies, but Ike Perlmutter didn't want to take on the film development risk. David Maisel's lobbying on Wall Street wasn't successful either. Many heroes from Marvel were still held by external entities.
Charles narrowed his eyes, "Keep an eye on Avi Arad. If he shows any intention to sell his Marvel shares, buy them immediately and start the full acquisition of Marvel Entertainment."
Ike Perlmutter and Avi Arad had been collaborators since Toy Biz. When Marvel Entertainment went bankrupt and split in the 1990s, Toy Biz merged with Marvel to form the current structure.
Together, Ike Perlmutter and Avi Arad owned over half of Marvel's shares. Charles wouldn't give Marvel external pressure now, as it would only unite Ike and Avi against a common enemy.
Only if one of them exited would Charles have a chance. It was a waiting game.
"I will keep an eye on it," Dona Williams assured. She had shifted her focus to Capet Pictures' investment division and managing Charles's Capet Fund, focusing more on her specialty.
The entertainment side was mostly reported to Charles by Phyllis Jones now.
After Dona Williams left, Charles pulled out the script for The Devil Wears Prada, which was ready for development.
Meryl Streep and Anne Hathaway had to be cast; they were worth it. David Frankel, skilled in directing fashion dramas, was ideal for directing.
David Frankel had directed HBO's Sex and the City and Entourage, making him a good fit for The Devil Wears Prada.
"Next up, we need to quickly negotiate with Hasbro about the live-action adaptation of the Transformers toys. Can't let DreamWorks beat us to it. Steven Spielberg's fame and prestige still surpass mine," Charles muttered.
"Phyllis, come in."
Responding to his call, Phyllis Jones quickly appeared in Charles's office.
"Boss, what's up?"
"First, send the script for The Devil Wears Prada to David Frankel. Capet Pictures is inviting him to direct it. The production department should also quickly come up with a budget report."
"Second, arrange a meeting for me with Hasbro's head. I need to discuss the Transformers live-action film adaptation," Charles directed.
Phyllis Jones nodded and prepared to handle the tasks.
"Oh, also set up a meeting with Anne Hathaway. I think the role in the film is perfect for her," Charles added.
"Got it!"
After Phyllis Jones left, Charles leaned back in his chair. DreamWorks and Paramount's future big cash cows, the Transformers film IP, would soon be his.
*****
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