Hollywood Director 1992.

Chapter 280 The storm is coming

Shortly after the meeting of the presidents of the seven major film studios, Link also received relevant news that the seven major film studios were preparing to join forces again to deal with Guess the Picture Studios, sniping Guess the Picture Studios' films at every stage from production to publicity.

Menacing.

Link called Greg Davis, chief investment officer of Vanguard Capital, and Paul Hankerson, senior partner of Morgan Investments, to ask for their opinions on whether the entertainment capital behind the seven major film studios would participate in this action.

The two expressed uncertainty and suggested that he conduct the second round of financing in advance.

As long as Wall Street capital holds the majority of shares in Guess What Pictures, there will be no difference between Guess What and the Big Seven Pictures.

We are all family. The investment companies behind the seven major film studios will no longer target Guess the Film Studio and will treat it equally.

Link came back to his senses.

On the surface, this meeting of the seven major film studios is a competition between companies, but in reality, Wall Street capital has seen that Guess What Pictures has made a lot of money and is eager to share the profits. They don't want to see an outsider like Link eat all the food alone.

In this way, Wall Street capital forced Link to conduct the second round of financing in advance.

Link asked the two what the current valuation of Guess What Pictures was on Wall Street.

When the two heard him let go, their tone suddenly became enthusiastic.

Greg Davis told him that several investment institutions on Wall Street have evaluated the market value of Guess What Pictures, and depending on the evaluation angle, the valuation is between 6 million and 8 million US dollars, making it the largest film company outside of the seven major Hollywood studios.

Greg Davis told Link that if he agreed to raise funds, Vanguard Capital would be willing to acquire shares of Guess What Pictures at a market value of $8 million.

Paul Hankerson made a commitment to him on behalf of Morgan Investments and was willing to acquire shares of Guess What Pictures for $8 million, and asked him when he would start the second round of financing.

Link continued to ask the two people that Wall Street wanted to guess how many shares the film company would put up for financing.

Both said they hoped to get above 50%.

After the financing exceeds 50%, Wall Street capital will occupy a dominant position on the board of directors of Guess the Movies.

The company's affairs will also be decided by the capital side.

The third round of financing was also led by capital.

After several rounds of financing, Link's shares were repeatedly diluted and his voice in the company continued to decline.

Guess what, by then the film industry will be completely dominated by Wall Street capital. Even if he is still the chairman of the company, he must listen to the opinions of the board of directors on important work.

This is the case with New Line Cinema and Miramax after they were acquired.

This is also the purpose of Wall Street capital, to use capital to control all profitable companies and further control the United States and the world.

After considering it, Link told the two that Wall Street's valuation of Guess What Pictures was too low and he would not accept it.

His offer was $18 billion to $20 billion.

First of all, at the end of last year, the market value of Guess What Pictures was less than 3 million. In just one year, its market value has increased several times. Even in the eyes of Wall Street investment consulting companies, the market value of Guess What Pictures has tripled.

This shows that the Guess What Film industry is developing rapidly and has great investment potential.

Secondly, Guess What Pictures' performance this year is better than that of the Big Seven studios. Some of the Big Seven studios have a market value of over 10 billion, and some have several billion, but none of them can beat Guess What Pictures in terms of movie box office.

Guess the money can be made quickly, the investment cost is low, and the investment risk is small. It is an investment that is sure to make money.

Wall Street should consider Guess the Movie to be on the same level as the Big Seven studios.

From these two aspects, the offer of 18 billion to 20 billion is very conservative.

If we wait until next year to start the second round of financing, I guess the film industry's offer will be no less than US$25 billion.

Link advised the two to take action in advance.

When Greg Davis and Paul Hankerson heard his lowest offer of $18 billion, they couldn't help but shout, "God, are you kidding me?" and "This is crazy."

When talking about the offer from Guess What Pictures before, they also guessed that Link was not satisfied with the offer of 6 million to 8 million because Guess What Pictures' performance this year was too good.

This year, Guess What released nine films, with North American box office exceeding $9 million and global box office expected to exceed $8 billion.

Including the box office share of "Pulp Fiction".

Add to that the revenue from video tape sales, home theater copyright, advertising sponsorship, and other peripheral copyright income.

Guess What Pictures' revenue is expected to exceed $20 billion this year.

After deducting the costs of film production and promotion, the net income will be no less than US$6 million.

An $8 million valuation for a company like this is indeed too little.

Their psychological price is $10 billion.

I also thought that Lynk would offer $10 billion.

It's just that Link's appetite is bigger and more arrogant than they expected.

Link ignored the evaluation of Wall Street investment companies and directly increased the company's offer by two or three times. Greg Davis told Link that the offer was too high and they could not accept it.

Guess What Pictures was established too recently, and the company has no other industries except the production company, distribution company, and Marvel Entertainment.

Unlike the seven major film studios, they also have movie studios, photography bases, movie theme parks, and movie library resources of tens of thousands of films.

From an investment perspective, Guess What Pictures is not a completely physical company.

Investing in such a company is too risky.

There is no way a Wall Street investment firm would accept this offer.

Paul Hankerson persuaded Link to surrender again.

In the past, the capital behind the seven major film studios ignored Guess the Movie because the box office revenue of Guess the Movie was not much and it was not worthy of their attention.

Now the rise of Guess What has seriously affected the interests of the groups behind the seven major film studios.

They will no longer sit idly by and watch the growth of Guess the Movie, nor will they watch their profits being snatched away by Guess the Movie.

Next, the seven major film studios and the media and entertainment groups behind them will take action against Guess Pictures.

Guess it will be hard for the movie industry to make money as recklessly as it has over the past two years.

If the capital behind the seven major film studios join forces to deal with Guess the Movie, the development of Guess the Movie will definitely encounter setbacks next year and its market value will be greatly affected.

At that time, no one would be willing to invest even $6 million, let alone $3 million.

Paul Hankerson persuaded Link to conduct a second round of financing when Guess What Pictures' two consecutive films were selling well and the market was booming.

On the one hand, earn more capital.

On the one hand, it actively ceded part of its profits to Wall Street capital in order to reconcile with the interest groups behind the seven major film studios.

Kill two birds with one stone.

If Link doesn't agree, he might miss the opportunity to avoid the risk.

After careful consideration, Link was willing to reduce the price by 2 million yuan, with a market value of 16 billion to 18 billion yuan, and to offer 30% of the shares for the second round of financing. The more he bought, the cheaper the price would be.

By the third round of financing, he will hand over more than 50% of his shares.

Currently, Link and Flash Gold Capital together hold 73% of the shares of Guess the Picture Company. Even if he uses 30% for financing, it will not affect his control over the company.

If the financing is successful, he will have hundreds of millions more funds in his hands.

When Greg Davis and Paul Hankerson heard that he agreed to make concessions, they said they would report to the company and let the company decide whether to invest.

Link also released news to the outside world through the media, saying that Guess it was preparing for a second round of financing, with a price of US$16 billion and an expected financing of 30%.

After the news came out, authoritative media such as The Wall Street Journal and Business Week reported that the seven major Hollywood film companies are planning to take joint action to cope with the rapid rise of the eighth largest Hollywood company, Guess What? Pictures.

Faced with the joint pressure from industry giants, Link, the founder of Guess the Movie Pictures, was forced to launch the second round of financing plan ahead of schedule in order to enhance the company's market competitiveness and capital reserves.

However, according to assessments by several Wall Street investment institutions, the current market valuation of Guess the Movie is only US$8 million at most, far below the US$16 billion financing target.

Industry insiders believe that judging from the offer price, Link seems unwilling to carry out the second round of financing in advance, and is also unwilling to give up profits to entertainment capital, so it proposed a very high price. If Link does not lower the offer price, the second round of financing will most likely fail.

"16 billion? Is this bastard crazy? How dare a lousy company that has been established for less than three years offer 16 billion? I wouldn't dare to offer such a high price even though CAA has been established for years."

Michael Ovitz looked at the news in the newspaper with an unhappy expression.

At its peak, CAA's market value was around $10 billion, and now it's about $6 million, which is similar to the valuation given to Guess What Pictures by Wall Street investment institutions.

But Link offered $16 billion.

In other words, what Link accomplished in three years was more brilliant than what he accomplished in twenty years.

Michael Ovitz was not impressed.

“It’s indeed high, but guess what, it’s also true that the film industry can make money.”

CAA Vice President Ron Mayer said.

Michael Ovitz did not refute. He snorted coldly, "Link takes capital operation too simply. The purpose of Wall Street capital suppressing Guess What? is to make money and maximize profits, but Link wants to use this method to rob money from investment companies and make a small profit with a big investment. I bet that this round of financing will definitely fail."

Ron Meier nodded in agreement. Wall Street capital wanted to let Link share the cake in this way, but Link wanted to take a cut from the capital in return.

Wall Street capital is powerful and greedy and will not let him succeed.

If no capital is willing to take over, the seven major film studios will be able to suppress Guess the Film Industry with impunity.

"This bastard will definitely pay the price for his greed. This is also the price he pays for offending me."

Michael Ovitz smirked.

(End of this chapter)