game trailblazer

Chapter 105 New Developments in the Film Industry

When Zhang Lexing left the 3DO company's new product launch conference, he did not have a 3DO game console in his hands, because at this time Trip Hawkins himself only had a few engineering prototypes, but he promised that after the official production, the first one would be released. The offline 3DO game console will be given to Zhang Lexing, which is a good collection.

Back in San Jose, Zhang Lexing fell into thinking about the development of DreamWorks.The current DreamWorks is far from being strong and strong. Although it can make a few films every year, the lack of its own distribution channels is always a hidden danger. Fortunately, with the good relationship between Spielberg and Universal, there is no need to worry about distribution for the time being. question.As a result, DreamWorks' annual film production has become a big problem. With the current shooting speed, there are only three or four films plus one TV series a year. Although it can make money, the speed is too slow. If you continue to develop step by step like this, sooner or later you will become someone else's vassal.

Increasing the investment of DreamWorks is one way, but it requires the consent of other shareholders to increase the capital. Zhang Lexing was originally the major shareholder of the company. It's a good thing, and it is impossible to increase the company's strength immediately by increasing investment.Zhang Lexing couldn't help but think of Mai Jiajun's catchphrase, "Mergers and reorganizations are the best medicine for the company's rapid development." He could consider acquiring one or two independent film companies, plus Pixar's establishment of a DreamWorks film group. It is greatly enhanced.

Of course, Zhang Lexing is not a reckless person. Taking advantage of the time of participating in the operating system seminar of Visual Software Group, he consulted many people, such as Yang Xinxin and her friends who are engaged in business management. came in.Everyone is very supportive of Zhang Lexing's idea of ​​strengthening DreamWorks through acquisitions, and Mak Kajun is eager to try it himself, but all he talks about is big companies such as Paramount and [-]th Century Fox. , immediately frightened Zhang Lexing away.

Next, it was time to look for acquisition targets, and it was time for Russell Market Research to step in.After a phone call, Zhang Lexing didn't have to wait too long. After more than a week, an investigation report from an American independent film company came to Zhang Lexing's hands again.

The report reads: "...The relatively well-known independent film companies mainly include Miramax Films, IFC Films, Samuel Goldwyn Films, Palm Pictures, Thought Films, New Line Films and other companies. Among them There are not only film companies such as IFC that focus on distribution, but also New Line Films that span production and distribution...Among them, Miramax Films, which meets the acquisition requirements, is led by Bob Weinstein (Bob Weinstein) Founded by brothers Harvey Weinstein in 1979, it is one of the independent film production and distribution companies in the United States. Disney is currently trying to acquire the company. The expected acquisition price is around US$7000 million... New Line Films, founded by Robert Shea in 1967, initially the company's business was the distribution of some low-cost films. After 1979, it began to get involved in film production. Since 1984, it has become famous for film production with the "Emma Street" series. New Line Pictures went public in 1986. In 1990, it established its position in the industry with the introduction of the film "Teenage Mutant Ninja Turtles". At present, the company has begun to develop into a mini-scale studio, and its business scope has begun to expand to home video, TV broadcasting rights trading, Overseas distribution and other expansion. In order to raise funds to complete the development goals, Robert Shea, chairman of New Line Films, intends to transfer part of the equity (about 30% to 35%) for external financing. According to investigations, CNN’s boss Ted Turner is working with him Contact, it is possible to purchase part of the equity of New Line Films, according to estimates, the purchase price may reach about 4 million US dollars... There are also..."

After watching it, Zhang Lexing set his main targets on Miramax Films and New Line Films.Zhang Lexing is not familiar with Miramax Films, nor does he know what achievements he will have in the future. The main reason is that the purchase price is relatively low. In addition, Miramax Films' introduction materials mention that "Flying Eagle Project" has been released. Hong Kong movies such as "Swordsman 2: Invincible in the East" aroused Zhang Lexing's interest.As for the price required by New Line Pictures, the price is a bit high, but Zhang Lexing has a little impression of this film company. The famous "Lord of the Rings" trilogy in the future will come from this company. "Ghost Street" series, it's hard for Zhang Lexing not to be tempted by New Line Pictures.

Now that the goal has been set, it is necessary to send people to negotiate next. Fortunately, Honghe Fund has many good negotiators, plus professionals from DreamWorks who understand the film industry. Unfortunately, both Lamax Films and New Line Films are competing with each other, so Zhang Lexing can only prepare to bleed.

……

Bob and Harvey have been very distressed recently. The Miramax film industry that the two brothers have been engaged in for more than ten years is about to fall into the hands of others. How can they be in a better mood.This matter started three months ago. Everything was fine at first. Although I borrowed a lot of money from the bank for the development of the company, according to the plan, it should still be able to repay it, but suddenly the banks that provided the loan He proposed to withdraw the loan in advance, and he would not hesitate to pay the loan interest for this.The attitude of the bank was extremely firm, and the repayment cycle was almost a year ahead of schedule, which disrupted the plans of the two brothers Bob and Harvey. Most of the funds on hand were arranged for film distribution and filming. The rest is just a little money reserved for daily expenses, and I can't even repay the loan from one bank, let alone several banks at the same time.

The two brothers also tried to obtain financing from other banks, but unfortunately none of them were willing. Seeing that the company they had worked so hard to manage was about to face bankruptcy and liquidation, the two brothers Bob and Harvey felt extremely uncomfortable.At this moment, the representative of Disney Company appeared, and he proudly announced that Disney had set his sights on Miramax Films. As long as the two of them cooperate a bit and sell Miramax Films to Disney Company, there will be plenty of enjoyment in the future. With all the splendor and wealth, the tone seemed to be that he was the savior of the world.

Miramax Films was created by two brothers, Bob and Harvey, and even the name of the company has a meaning (Miramax is an abbreviation of the parents' names Miriam and Max. ), the two never considered selling the company, but under the current situation, the two have no strong confidence at all.After being rejected for the first time, Disney's representative was not discouraged at all, and came more frequently, and sometimes even happened to appear at the same time as the bank's reminder.Disney's aggressive attitude made Bob and Harvey brothers understand that the acquisition of Disney was determined to win this time. They even speculated maliciously that there might be Disney's shadow behind this change in the bank's attitude.Rejecting the conditions put forward by Disney time and time again, the two brothers Bob and Harvey knew that this would not play any fundamental role, and could only delay for a while at most, but in this case, even if Miramax It is also a consolation for the film industry to stay in the hands of the two for one more day.

Unexpectedly, there would be a day of turning around. Not long ago, a joint negotiating team formed by Red River Fund and DreamWorks found two brothers Bob and Harvey, expressing their intention to acquire Miramax Films, and offered a very attractive offer The conditions are much better than those of Disney, and more importantly, from now on, Miramax Films will turn around and call the shots, and it is no longer the time to be unilaterally oppressed by Disney.The sudden addition of competitors made Disney's representatives dumbfounded. They were forced to give up their original arrogance and became much more humbled. Brothers Bob and Harvey also became happier.

Talking about it, the representatives of Disney had to raise the price slowly, but the joint negotiating team of Red River Fund and DreamWorks was able to keep the quotation slightly higher than Disney, and the credits of Bob and Harvey were indispensable.This discussion lasted for more than three months. In the end, the joint negotiating team of Red River Fund and DreamWorks defeated Disney with an offer of US$8000 million to acquire 85% of the shares of Miramax Films, and successfully took control of Miramax Films.The reason why the two brothers Bob and Harvey agreed to the acquisition offer of the joint negotiating team of Red River Fund and DreamWorks is that on the one hand, the other party promised to retain part of the equity to the two brothers and ensure the independent operation of Miramax Films; The two wanted to see the wonderful expression of the Disney representative after the complete failure.

On the other hand, New Line Cinema...

This time, the opponent of the joint negotiation team of Red River Fund and DreamWorks was replaced by Ted Turner, the boss of CNN. The price will be determined by the price, which is just in line with the wish of the old fox, Robert Shea, the chairman of New Line Pictures.The two parties come and go, and the quotations have been rising all the way. From the initial quotation of US$3.2 million reported by CNN to acquire a 35% stake in New Line Films, it gradually increased. Finally, the joint negotiation team of Red River Fund and DreamWorks made a final decision to acquire New Line for US$5.5 million. The offer for a 30% stake in the film industry won the competition.After signing the relevant agreement, Robert Shea sold 11.31 million shares of New Line Pictures to Red River Fund at a price of US$883 per share, which is equivalent to owning 7.24% of New Line Pictures. Immediately afterwards, at the general meeting of shareholders, a resolution was passed to issue 11.31 million additional shares to Red River Fund at a price of US$3980 to raise US$4.5 million. As a result, Red River Fund achieved its goal of holding 30% of New Line Cinema.

In the process of this transaction, Robert Shea, an old fox, not only raised the funds needed for the development of New Line, but also took the opportunity to earn nearly 1 million US dollars in the process, and successfully maintained his position in New Line. The right to speak in the online film industry.It's a pity that this right to speak is not secure. According to Mak Kajun, "As long as you give me 5%, I can leverage the entire board of directors." What's more, Honghe Fund holds as high as 30% of shares in New Line Films. The second largest shareholder next to the company's chairman Robert Shea, as long as there is a suitable time, it may not be as simple as the board of directors.

After completing the acquisition or holding of Miramax Films and New Line Films, Red River Fund has not kept these two companies in its hands. Therefore, according to Zhang Lexing's previous instructions, a new company named DreamWorks Holdings was established, and all the relevant equity interests in DreamWorks, Pixar, and this time Miramax Films and New Line Films were purchased. Among them, and invited professional managers to manage it, the DreamWorks Pictures Group began to take shape.

(End of this chapter)