The Best Entertainment Era
Chapter 518 Fund preparation
In the spacious office, letters as blue as sea water are pasted on the wall behind the reception desk. The Pacific Film Foundation has long been changed to the Pacific Investment Fund.
After several years of development, the foundation has handled hundreds of millions of dollars in investment funds, almost all of which are in cooperation with Relativity Entertainment.
Sitting in a bright and elegant office, Scott Swift, the decadence of failing to invest in the stock market disappeared without a trace, and he was full of vigor, as if he was ten years younger.
The foundation's business is single, and there are not many staff members, only more than 20 people, most of whom are highly educated professionals in finance and accounting for both finance and law.
Scott Swift looked at a return receipt, which was part of the statistics of Pirates of the Caribbean by Sandhai Entertainment.
From the production to the distribution of this pirate movie, all the investment comes from the Pacific Foundation.
Although Pirates of the Caribbean has not yet been released, the online promotion and distribution of the film has ended, and the total investment in global online distribution and promotion is as high as 115 million US dollars.
At the same time, a detailed budget has also been planned for offline promotion, with an expected investment of US$15 million.
Including the production cost of Pirates of the Caribbean of 140 million US dollars, the total investment of the Pacific Investment Fund is as high as 270 million US dollars.
Relativity Entertainment's successful operation of Pirates of the Caribbean is not only due to the excellent quality of the film itself, but also inseparable from the high investment.
The total investment of Pirates of the Caribbean can definitely enter the top ten movies that have been released in Hollywood.
Huge investment in exchange for super high returns, Pirates of the Caribbean is still screened in North America, with a cumulative box office of 387.2 million U.S. dollars, and a global box office of more than 750 million U.S. dollars.
If nothing else, even if all kinds of interest are taken into account, Relativity Entertainment can recover its cost by relying on box office alone.
In addition, the peripheral products of the film have sold a total of 41.2 million US dollars worldwide. The licensing of products and copyrights has ended. Eleven manufacturers from all over the world have obtained relevant authorizations for five years, and the total licensing income is close to 70 million US dollars.
Although it is far from the achievement of selling hundreds of millions of dollars for the authorization of the Harry Potter series, only one Pirates of the Caribbean has been released.
Next week, Embassy Pictures will conduct the first round of bidding for TV rights in North America.
Base bids start at $15 million.
As the producer, Sandsea Entertainment estimated that Pirates of the Caribbean could bring about US$100 million in profits to the production company.
As for the profits of the distributors, Hollywood distributors have never announced their distribution profits.
The film profits announced by those companies that have both production and distribution businesses are basically the profits of the producers, and the various deductions for distribution are neither visible to outsiders nor difficult to count.
Even so, the producers of Pirates of the Caribbean are still profitable, even if they have to pay the Pacific Film Foundation a total interest of 14% for three years.
Relativity Entertainment is a commercial company, and the Pacific Investment Foundation is a commercial investment institution. Although they belong to the same person, they are completely independent companies without any affiliation.
The Pacific Investment Fund also needs to make a profit. All the funds raised have interest, and the investment in the film also has interest.
The financing interest is 12%. Although the difference with the investment interest is small, the investment base is huge. The Pacific Investment Fund will make a lot of profits just by investing in Pirates of the Caribbean.
At the very least, it is more than enough to operate and manage this business investment foundation.
Scott read the receipt, reviewed two investment forms, and made an investment approval. Two projects of Sandsea Entertainment are about to launch, namely Despicable Me by the animation studio, and Despicable Me by Guillermo Del- Toro's comic book adaptation Hellboy.
The former has a production budget of 60 million US dollars, while the latter is expected to invest 55 million US dollars.
The average investment of Shahai Entertainment's film projects is getting higher and higher. Scott estimated that in a few years, the average total investment may reach 80 million US dollars.
Without funds, no matter how good a project is, it cannot be photographed.
As the CEO of the Pacific Investment Foundation, he never has to worry about the projects he invests in. Instead, he must do everything possible to raise funds, so that the funds of the Pacific Investment Foundation can keep up with the development speed of Relativity Entertainment Group.
There was a knock on the door, and the female assistant came in and said, President, I received a call from Assistant Connie, and Mr. Anderson will come right away.
Okay, I see. Scott cleared his desk and waited outside the office for a while.
But in just a few minutes, Ronan walked into the office of the Pacific Investment Fund, greeted Scott, and the two entered the reception room together.
Ronan took a cup of coffee and asked Scott: Has the first batch of financing for Millard International Holdings Group arrived?
It has arrived. Scott said: It is currently stored in the account of the Bank of America.
He reminded: Ronan, the annual interest rate of this financing is as high as 4%, we must find a suitable project to invest in as soon as possible.
Ronan took a sip of coffee and said, Don't move this money for now. I need the foundation to prepare 200 million to 400 million US dollars in funds, which will not exceed half a year at the latest. Relativity Entertainment will need this investment.
Scott asked, What project?
Ronan said simply: A takeover case.
Hearing this, Scott didn't ask any more. As a member of the Pacific Investment Fund, there is no need to ask about the commercial secrets of Relativity Entertainment.
Scott said: I will plan the funds, and there will be no problem.
Ronan nodded: Continue to develop financing channels, and the work in this area cannot be stopped.
“Financing has always been the foundation’s number one priority,” Scott laughs.
Upgraded from an ordinary single foundation to an investment foundation, the Pacific Investment Foundation can not only accept investment from financial institutions and commercial companies, but also raise funds from individuals.
However, U.S. law has relatively strict restrictions on foundation financing, and foundations are not allowed to advertise publicly.
The Pacific Investment Fund is not making fast progress in personal financing.
Ronan asked about the personal foundation again: Have all the newly transferred funds been invested?
There is still a part. Scott said truthfully: Apple's stock is climbing. We have acquired a lot of odd stocks, and we can't find any minority shareholders who have cashed out. Amazon's situation is better, but the stock price is also rising steadily.
Ronan nodded: Continue to invest, the dollar will only continue to depreciate.
In the next four to five years, it can be said that the U.S. economy has entered a new golden stage of development. It seems that in 2008, it encountered a financial crisis, with insurance, real estate and financial investment institutions as the mainstays. The high-tech industry was relatively affected by the crisis. The impact is smaller.
Of course, no impact is impossible.
Like Hollywood, since 2008, there has been a general shortage of money.
Affected by the financial crisis, funds outside of Hollywood are not spending as much money on various producers as before, and have begun to shrink their money. Even the six major companies are having a hard time.
Ronan knew very well that under the premise of ensuring the normal development and expansion of the company, Relativity Entertainment must reserve a part of the reserve fund.
It is definitely not a wise decision to put all the funds in one go.
After chatting about work, Scott talked about some personal matters with Ronan. After all, the two have known each other for many years and can be said to be friends.
Will you be a guest at my place tonight? Scott issued an invitation: I'll call Andrea right away.
Ronan quickly said: I don't have time tonight, I'll make an appointment with the screenwriter of Shahai Entertainment later.
Scott said regretfully: It's too unfortunate. He smiled: Taylor has always mentioned you recently, saying that you haven't paid attention to her for a long time.
Ronan asked at the right time: How is Taylor? What are you up to?
Participate in some Peppa Pig promotional activities. Scott seems very proud of his daughter: She has grown up and knows what she wants. In addition to her daily studies, she has been studying music. I invite her A very professional teacher.
Ronan remembered the Peppa Pig that ABC started playing, and said: Taylor's musical talent is very good, that Ping Pong song is very good, how is the current teacher's level? I know some professional pop music in the circle. If you need a good teacher, just tell me.
This is just a piece of cake for him, but it allows Taylor to have a high starting point that ordinary people can't have.
Scott was also not polite to Ronan, and said, I will definitely speak up if necessary.
The two chatted for a while, Ronan checked the time, said goodbye and left Pacific Investment Fund.
At present, Peppa Pig has just landed on ABC TV. Although it is based on the previous Oscar for best animated short film, it is not famous at all, but the response is not enthusiastic. Most viewers have not noticed that this is very childish. cartoons for children.
If Peppa Pig wants to show off his power, it needs a certain amount of time to accumulate, and fame and word of mouth need time to ferment.
The operation of children's cartoons is not as fast food as popcorn movies. It often takes long-term operations to make a profit. Moreover, in a market with relatively complete copyright protection such as North America, the profitability of peripheral products is much stronger than that of cartoons themselves.
Both Ronan and Shahai Entertainment have done some market research. It usually takes about a year for a new animation series to explode in the market.
The Rolls-Royce parked at the door of a coffee shop near the Disney Studios. Ronan got out of the car, entered the coffee shop alone, asked the waiter, and led by the waiter to a booth in the far corner. To Lindsay Beale with the eye script.
For the rest of Relativity Entertainment, Lindsay Beale has been missing for several months, and has only been in contact with Ronan at work during this time.
Seeing you, I'm finally relieved. Seeing that Lindsay Bill was in a good state of mind and hadn't turned into the fat house girl he imagined, Ronan said, Have you finished the work at hand?
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