Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 393, 391: The Dark Horse

In March 2002, Beijing was filled with the chill of early spring, yet a surge of change was underway.

The initial finalization of Shengying Media Group's listing plan is like a boulder thrown into an already turbulent capital market, causing ripples that quickly spread to a wider area.

Under Wang Sheng's personal supervision, the group's preparations for the listing are proceeding at high speed.

The secretariat and legal and financial teams, led by Li Tingting, began intensive communication with the underwriting syndicate led by Goldman Sachs, Morgan Stanley, and CICC.

Detailed due diligence checklists were drawn up, covering the company's equity history, business contracts, financial status, intellectual property, and even the backgrounds of key employees, with a level of detail bordering on harshness.

Wang Sheng had anticipated this. Although Sheng Ying Media has occasionally engaged in operations that circumvented the gray area, its core assets and profit model are clear, and in recent years, with its expansion and clear listing goals, it has made great efforts to regulate itself.

More importantly, the deep partnership with China Film Group and the good "record" left by various competent authorities cleared away many potential obstacles for this review.

However, the feast of capital is never just about piling up data and terms, but also about the redistribution of power and interests.

The news that Shengying Media plans to raise 30 billion yuan and its valuation will reach 150 billion yuan spread quickly, causing complex reactions in the industry and higher-level circles.

Some state-owned investment institutions that were originally hesitant about the cultural industry, such as Beijing Capital Holdings and Shanghai Industrial Holdings, have begun to more seriously evaluate the possibility of participating in strategic placements.

This is not only about financial returns, but also about securing a place in the future landscape of the cultural industry.

Meanwhile, various forces that had long coveted the property intensified their activities.

The "Shanghai United Cinema Chain" alliance, centered around Shanghai Film Distribution and Exhibition Company and Shanghai Film and Television Company, accelerated its integration and lobbying efforts after feeling threatened by the massive capital injection that "China Film Prosperity" was about to receive. It attempted to gain more policy support and break the potential monopoly.

Guangdong Province, leveraging its geographical and capital advantages, has quietly expanded its "Guangdong Film South Cinema Circuit," sparking an undercurrent of "land grabbing" for cinema terminals across the country.

Within the State Administration of Radio, Film and Television and the Publicity Department, while the majority of voices support Shengying's IPO, cautious opinions also exist.

During an internal briefing, an official asked: "The success of Shengying's model is undeniable, but is its valuation too high?"
After receiving huge amounts of funding, if blind expansion leads to operational risks, or if content production deviates from the correct direction in order to cater to the capital market, who will be responsible?

We must strengthen process supervision to ensure that while enjoying the benefits of the capital market, they also keep in mind the social responsibilities of cultural enterprises.

These messages were subtly conveyed to Wang Sheng through channels such as Han Sanping.

The meaning above is clear: it is necessary to demonstrate both tremendous commercial success and to always highlight the unity of "social benefits" and "economic benefits".

It's basically about wanting both, an old tradition.

……

Meanwhile, post-production on "Night at the Museum" is also in full swing.

In between handling listing matters, Wang Sheng frequently visited Xiantao Digital's post-production base at Beijing Film Studio.

The interaction between Jackie Chan and the air in front of the green screen requires CGI technology to give those antique artifacts life and personality.

Zhong Zhixing's special effects team faced immense pressure, not only having to achieve the "magical realism" texture required by Wang Sheng, but also having to complete all the special effects shots within nearly a year to ensure they could be released in time for the planned Lunar New Year film season.

Wang Sheng's meticulous attention to detail was on full display at this moment. The change in the light in the eyes of a terracotta warrior as it turns its head, the rhythmic movement of the patterns on a bronze tripod—these were things he might ponder for a long time. He knew that this film was not only a touchstone for Sheng Ying's industrial capabilities, but its market performance would also directly affect its valuation and investor confidence at the time of its IPO.

……

While Wang Sheng was busy coordinating the overall domestic situation and the film's post-production, across the ocean in the United States, a battle concerning the first step of Sheng Ying's internationalization was about to begin.

In early March, New Line Cinema launched the promotional and distribution cycle for "Shaolin Soccer".

Thanks to the participation rights that Wang Sheng had secured during previous negotiations, Sheng Ying dispatched a small team to the United States to assist New Line Cinema with cultural interpretation and marketing planning.

In terms of promotional strategy, New Line adopted some suggestions from Wang Sheng's team, downplaying overly regional jokes and highlighting the universal values ​​of "grassroots underdog success" and "dreams coming true," as well as the combination of Stephen Chow's unique "nonsensical" comedic style with cool special effects.

The trailer highlights stunning football-themed kung fu special effects, attempting to attract young audiences with visual spectacle.

……

However, the North American film market in March 2002 was in a delicate state.

The shadow of unspeakable events has not completely dissipated, and audiences tend to seek lighthearted and joyful entertainment.

就在《功夫足球》定档3月29日前后，二十世纪福克斯公司推出了一部名为《冰河世纪》的3D动画长片，于3月15日上映。

This heartwarming comedy about prehistoric animals, produced by Blue Sky Studios, has garnered rave reviews and strong box office performance since its release, thanks to its superb animation technology, endearing character designs (especially Scrat, the squirrel obsessed with nuts), and humorous and touching story. It quickly captured the family and young audience market.

The sudden emergence of Ice Age completely disrupted New Line Cinema's expectations for Shake Soccer.

This family-friendly animated film not only raked in a large amount of box office revenue, but also dominated media coverage and public discussion.

In contrast, while Shakespeare Soccer has a unique style, its cultural heterogeneity and somewhat "eccentric" comedic presentation risk being overshadowed by a lack of strong promotional resources.

Within New Line Cinema, Kevin Brown, who had initially championed the collaboration with Wang Sheng, was under considerable pressure.

In a briefing sent to Wang Sheng, New Line Cinema subtly stated: "The market environment has changed unexpectedly, and Ice Age has performed far beyond expectations, putting pressure on all other films released in the same period."

We remain confident in the unique qualities of "Shaolin Soccer," but the opening weekend release size may need to be adjusted appropriately, and we need to find a more precise target audience for targeted marketing.

Robert White also privately called Wang Sheng, his tone grave: "Wang, the situation isn't good. Ice Age is a dark horse, and now all non-blockbuster films are avoiding its brilliance."

Some people on New Line Cinema are losing confidence, feeling that this Asian comedy will likely struggle in the current market, and their previous investment might be wasted. You need to be prepared for that.

When the news reached China, a sense of unease inevitably arose within Shengying.

After all, the North American distribution of "Shaolin Soccer" is a key part of the company's first strategic cooperation with Hollywood. If it goes poorly, it will not only affect short-term revenue, but may also undermine international capital's confidence in Shengying's ability to "go global", thus affecting the listing valuation.

Wang Sheng instructed the team going to the US: "Cooperate with Newline, concentrate resources on in-depth exploration within the Chinese community, Asian groups, and cult film enthusiasts, and use emerging social networks and forums online for word-of-mouth marketing. Tell Newline not to give up easily; sometimes, the unconventional can create miracles."

Wang Sheng didn't want to compete with films like "Ice Age," which were among the top ten highest-grossing films in the US that year. But there was nothing he could do. The worst release periods in the US are the spring and fall seasons, which are squeezed between the summer and holiday seasons. New Line Cinema isn't that great after all, and it's already quite an achievement that they were able to make a strong showing in the spring season.

(End of this chapter)