บท 739: Chapter 740: Coincidence
[Chapter 740: Coincidence]
With a series of positive news, MGM's stock price surged from $10.50 before the summer blockbuster season to $13.70 following the press conference.
After completing the integration of three companies, the new MGM's total share capital reached 365 million shares. When the stock price hit $13.70, MGM's market value successfully surpassed $5 billion. Consequently, the upcoming plan to issue 70 million additional shares was expected to bring in around $1 billion in cash, allowing MGM to completely shed the shadow of debt that had been plaguing it and set off on a path of healthy development.
The stock issuance would be managed by MGM's top executives in the following months. After the press conference, Eric diverted some of his attention towards planning the MGM spy movie universe.
Charlie's Angels and Mission: Impossible had both emerged as popular spy films in the past two years. Although both were adaptations of classic TV shows, the addition of these films into the spy movie universe faced little opposition and instead sparked great anticipation among fans.
However, when Eric suggested incorporating the 007 series into the plan, it sparked some controversy. Most of the criticism focused on the potential dilution of the 007 franchise's brand equity. Media outlets even interviewed past actors who portrayed 007, with the original James Bond actor Sean Connery openly opposing the plan, claiming MGM was acting recklessly.
Eric simply smiled at these voices of dissent.
So far, all the original novels in the 007 series had been adapted into films by 1987, with the exception of one, Casino Royale. Moreover, even those series from before 1987 often bore little relation to Ian Fleming's novels. To maintain a semblance of 'heritage,' the series habitually attached quirkily related titles to Fleming's name, referencing either his pets, vacation home, or quotes from his books.
Ironically, the only film in the 007 series that grossed over $1 billion worldwide, Skyfall, had a title that had absolutely no connection to Fleming whatsoever -- it was actually created by MGM's own writing team.
In Eric's eyes, this tenuous connection was entirely unnecessary. The greatest strength of the 007 franchise lay in the global recognition it had built over decades. As for box office appeal, the previous film, Licence to Kill, only raked in $34 million in North America, demonstrating that the 007 franchise's box office allure wasn't as strong as one might think. If a story wasn't executed well, no amount of fame would convince the audience.
Eric's idea for a spy movie universe had also been influenced by the Daniel Craig version of 007 from the original timeline.
In that timeline, the 007 films around the turn of the century, particularly Casino Royale, had been both critically and commercially successful. While the series often boasted about its 'heritage,' it frequently opted to create a completely new story for each installment, often discarding the recognition accrued by previous characters -- something he viewed as a regrettable waste.
The Daniel Craig version of 007, however, ventured down a different path, which Eric thought was quite serendipitous. After the success of Casino Royale, MGM hurried to initiate the sequel's production, but unfortunately, the process coincided with the Hollywood writers' strike in 2008. This left them unable to gather star screenwriters to craft an entirely new tale.
In their desperation, the production team had to piece together a 'sequel' that directly followed Casino Royale, which was Quantum of Solace. Viewers who hadn't seen Casino Royale would likely struggle to follow the sequel's plot. Thus, it seemed MGM held little hope for the sequel, but surprisingly, this confusing 'sequel' ended up grossing nearly $600 million worldwide, matching its predecessor.
Beginning with Quantum of Solace, it appeared MGM had finally grasped something. They no longer completely abandoned the stories from previous films; they ceased the relentless hunt for a main villain with every installment, and they did away with the forced connections to Ian Fleming's legacy. They began creating an overarching storyline connecting several sequels.
Amidst these changes, the subsequent film, Skyfall, created a pinnacle moment in 007 history with a global box office of $1.1 billion. Later, Spectre, despite receiving poor reviews, still managed to gross nearly $900 million.
Inspired by the Daniel Craig 007 series, Eric planned to eliminate some of the subsequent Pierce Brosnan films like Die Another Day and Tomorrow Never Dies, discarding the tired trope of searching the globe for villains. Instead, he aimed to use the organization known as Spectre as the ultimate antagonist, incorporating elements from Charlie's Angels and Mission: Impossible into a cohesive backstory, creating a complete spy movie universe.
He decided to begin this story with Ian Fleming's only novel that hadn't been adapted for the big screen, Casino Royale. The currently screening GoldenEye would become the last film to reference the rivalry with the Soviet Union.
Of course, while crafting the story's main arc, MGM needed to address another long-standing issue -- the lawsuit that had haunted the 007 series for decades. Over thirty years ago, the "Spectre" organization from Ian Fleming's novels was modeled after a rival novelist, Kevin McClory's creation. After a lengthy legal battle, the rights to Spectre were awarded to McClory.
To establish Spectre as the ultimate villain in the MGM spy movie universe, the studio would have to resolve this copyright issue. While it was possible that MGM had previously been unwilling to pay the millions for the rights, it was now a different situation.
With money no longer a pressing issue, Eric felt confident that McClory's demand for $2 million was fair, especially since Spectre had already appeared in six previous 007 films. Even though MGM hadn't used it since the initial ruling, Spectre's fame was certainly worth the price.
...
Throughout August, while Eric was busy with the MGM spy movie universe, he also made a trip to Silicon Valley in San Francisco.
After preparation, the Firefly Electronics Company, responsible for developing MP3 players and e-readers, was officially founded. Simultaneously, Firefly Electronics signed a secret agreement with disk manufacturer Seagate to develop micro-disks.
Since the company didn't yet have official products, Firefly Electronics had established its electronic product R&D center in Silicon Valley. Over in Boston, Yahoo's stock option reward plan was fully implemented, maintaining most of its management, aside from a few executives like Jeff Locke who had left. As the MP3 and e-reader development center commenced, Yahoo also began plans for an online music store and an online e-book store.
Developing micro-disks would require at least a year. Eric's primary expectation for the R&D center in Silicon Valley wasn't for them to produce a product quickly, but rather to take advantage of the situation and register comprehensive patent copyrights covering all aspects of MP3 technology both in the U.S. and abroad.
The technology behind MP3 players wasn't particularly complex, but by securing most patents ahead of time, Eric knew that in the future, production wouldn't be as simple for just anyone. He could wield substantial leverage in the coming digital music era.
...
Upon returning to Los Angeles from San Francisco, Eric received news from Firefly that the Wachowski brothers had completed production on their directorial debut, Bound.
While on the plane, Eric received a call from Katzenberg, and after landing at Santa Monica Airport, he immediately headed to the nearby Playa Vista Firefly Studios to meet with Katzenberg and the Wachowski brothers.
Bound told the story of two lesbian girls seeking a way out of their current lives who plotted to con $2 million from a mob boss, inadvertently starting a war within the mob.
Stripped of its lesbian and female-led aspects, the film was essentially a classic crime drama. Of course, the inclusion of LGBTQ+ elements added a unique flavor.
In the screening room, after watching the film, Eric nodded in satisfaction and told Katzenberg, "Given the quality of this film, if we let New Line handle the operations, it could easily recoup its $4.5 million production cost at the box office. You aren't doubting their talent anymore, are you?"
Having been in the film industry for many years, Katzenberg, of course, had an eye for talent. He nodded and chuckled, "Absolutely, I'm beginning to have high hopes for those two."
After some low-key exchanges, the credits rolled, and the lights came up in the screening room. Eric got up and approached the Wachowski brothers, who looked a bit anxious. "Get ready. I hope you can quickly take your crew to Sydney. Most of the preparatory work is done; you just need to start filming as soon as possible."
The Wachowski brothers paused, realizing what was happening. Andy Wachowski replied, "Eric, does that mean we've been approved?"
"Yes," Eric nodded, adding, "But I will keep a close watch on the production of The Matrix, so I hope you won't let me down."
"Of course, we absolutely won't," Andy Wachowski said, rubbing his hands together in excitement.
...
After discussing the filming plans for The Matrix, the Wachowski brothers hurried to leave, and Katzenberg took Eric to his office to talk about another matter. "Eric, at the scale of Digital Domain currently, just sustaining Firefly and MGM's film production is becoming a bit of a stretch. We have many orders from other film companies as well. Stan discussed with me yesterday, hoping to continue increasing the workforce in the digital sector."
Now that MGM was on a stable path, both companies were expected to produce no less than five CG effect-driven films each year. Given that each film required at least a 500-person effects team, they would need 2,500 people.
Additionally, the application of CG effects was becoming increasingly widespread. Even films not primarily focused on effects needed the expertise of effects companies. Thus, the past few years had been a golden era for special effects companies. With sufficient technology, projects were never in short supply, and industry giants like Digital Domain were thriving.
However, Eric was well aware that the good times for effects companies were numbered. As the new century approached, with further advancements in computer technology and other software giants entering the field of effects software development, these companies would soon transition from elite status to the mainstream. Those presently reaping high salaries in effects roles would soon find themselves working more mundane jobs.
Eric was already planning to take Digital Domain public during the peak of special effects films in the coming years. At this moment, fueled by concerns for the future, he couldn't afford to continue blindly expanding Digital Domain's size.
Thinking about The Matrix, which would be filmed in Australia, Eric said, "It's better not to expand any further in the U.S.; if possible, we should establish subsidiaries overseas. Effects companies wouldn't consume too many societal resources; they can instead generate significant tax revenue. I believe countries like Canada, Australia, and New Zealand would be quite welcoming. We could establish subsidiaries in those countries and seek tax incentives."
"That's actually a good plan," Katzenberg nodded. "Which country do you think we should set up the subsidiary in?"
Eric immediately thought of New Zealand; in his past life, Weta Digital, which was synonymous with Digital Domain, had emerged from this country.
However, Weta had already formed as a studio years ago when Peter Jackson established it to produce his personal films with a few partners. While it had a small setup, it was fully operational. Though Eric would entrust the Lord of the Rings series to Peter Jackson, he wouldn't support an unrelated effects company.
After a moment of consideration, Eric said, "Let's choose between Australia and New Zealand. The Matrix and the Lord of the Rings would be filmed in these countries, which would allow us to save a lot of energy on-site. I'll communicate with Fox to help with this since News Corp's foundation is in Australia. We can use their influence to acquire better incentives from the Australian government."
As he spoke, Eric glanced at the clock, realizing he still had over two hours until the end of the workday. He told Katzenberg, "Alright then; I'll head over to Fox now. You get back to it."
*****
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