Hollywood, I became a legend with special effects.

In the week following Cameron's departure, the Santa Monica Light & Shadow Digital headquarters resembled a highly tense command center.

Wu Na and Zhou Mu led the technical team day and night to refine the previously presented concept into a 300-page document titled "Technical Solution and Implementation Plan for the Designated Special Effects Work Package for 'Avatar'".

Meanwhile, in the closed conference room of Light Chaser Investment, a team led by Light Chaser Pictures CEO David Cohen is holding a remote meeting with experts from several top entertainment law firms, repeatedly refining an unprecedented draft of the "Framework Agreement for Preferred Stock Investment and Strategic Cooperation in Film and Television Projects".

As a former Paramount producer, David is well-versed in the rules and unspoken rules of Hollywood. At this moment, he not only has to secure the greatest benefit for Light Chaser Animation, but also ensure that this cross-industry investment agreement can stand firm within the rules of the game in Hollywood.

In late June, a carefully worded but clearly intended meeting invitation was conveyed to Fox and Cameron through Legato.

The meeting was held in a suite at the Beverly Hills Hotel, a neutral and highly private location.

When Jiang Yu entered the conference room with Wu Na, David Cohen, and two externally hired entertainment law experts, the room was already full of people.

Cameron arrived in person, his expression serious.

Fox, on the other hand, boasts a strong lineup led by Senior Vice President and head of the Avatar project, Sam O'Connor.

The small talk was brief.

Sam O'Connor spoke first: "Mr. Jiang, thank you for providing the detailed technical solutions. After evaluation by Director Cameron and our technical team, we acknowledge that Light & Shadow Digital is capable of handling the core visual effects work for Avatar. Now, let's talk about the specifics of our collaboration, as well as the broader possibilities for cooperation you mentioned."

His gaze swept over David Cohen and finally landed on Jiang Yu.

Jiang Yu nodded slightly, signaling David Cohen to speak first.

David Cohen opened the folder in front of him, his voice carrying the smooth sophistication typical of Hollywood producers: "Mr. O'Connor, Director Cameron. Based on our deep understanding of the prospects of the Avatar project and our confidence in our own technical capabilities, we propose an integrated solution aimed at resolving the current technical challenges and financial pressures facing the project in one fell swoop."

He paused to make sure everyone was listening: "The proposal consists of two parts. Part one: Light & Shadow Digital will undertake approximately one-third of the most challenging visual effects work in Avatar for a fixed total price of $60 million, the specific scope of which is detailed in Appendix 1 of our submitted technical proposal. This price is based on our optimized 3D workflow and efficient algorithms, which are estimated to save at least 15% in cost and time compared to traditional methods. We will provide the highest quality assurance and accept rigorous acceptance based on milestones."

$6000 million! Fox's CFO's eyebrows twitched.

"The second part," David Cohen continued, emphasizing, "is that Light Chaser Animation, our production and investment platform, is willing to invest $2000 million in cash in the Avatar project. This funding will be provided as preferred stock and will be used specifically to support the film's production."

"An investment? 2000 million preferred shares?" Sam Auquan leaned forward slightly. "What are the specific conditions?"

David Cohen released a summary of the agreement: "The main terms are as follows: First, preferred stock entitles the holder to a fixed dividend of 8% per annum, payable preferentially upon the film generating revenue. Second, after recovering the principal investment and the fixed dividend, Light Chaser Pictures has the right to participate in the distribution of the film's net profit. Our requested share is one-third of the global box office net revenue from special effects and investment, as well as 15% of the corresponding copyright derivative revenue and net revenue from merchandise sales."

"What?!"

The meeting room erupted in chaos.

Fox's legal director nearly stood up, Sam Auquan's face instantly darkened, even Cameron frowned, and Mark Hill's mouth dropped open.

One-third of the box office revenue!

There's also a corresponding 15% cut of copyright and merchandise!

“Mr. Jiang, David,” Sam O’Connor tried to keep his tone steady, “I must remind you that this revenue-sharing demand is completely contrary to industry practice and far exceeds Fox’s acceptable limits. One-third of the net box office revenue? Do you know what that means?”

David Cohen then demonstrated his negotiation skills as a Hollywood veteran, speaking in a slightly sentimental yet incisive tone.

"Sam, we've known each other for many years. You and I both know that Avatar is no ordinary project. It's a high-stakes gamble, a gamble that requires unprecedented technology and courage. Director Cameron is pushing the limits, and Fox, if I may be so bold, the board is now hesitant."

He glanced at Cameron, then back at Sam: "What we're offering isn't a simple supplier contract, or even a typical investment agreement. We're offering a lifeline, a lifeline that can both save this potentially history-changing project and share the greatest risk for Fox. The $2000 million in preferred stock is pure oxygen injected when the project needs it most. We're taking the risk of losing everything if this lifeline fails. Therefore, we need a share of the success that matches this risk and determination. This isn't greed, Sam, it's equality."

David seemed to be talking not only about money, but also about the life and death of the project, and about vision and courage in the industry.

Cameron crossed his arms, paused for a few seconds, then looked at Jiang Yu: "Jiang, I welcome technical cooperation and investment, but this profit-sharing is too aggressive. The success of a film depends on too many factors, and Fox bears the majority of the development and distribution risks. A third of the net revenue and copyrights will make the project's financial structure extremely complicated."

Jiang Yu had been listening quietly until now, when he slowly spoke: "Director Cameron, Mr. O'Connor. What we're asking for isn't just monetary compensation, but a deep commitment and shared determination to the project's success. We believe that *Avatar* will be a success, a huge success, and may even change the film industry."

He paused, then dropped a crucial point: "Moreover, our plan actually covers a portion of Fox's core production costs (6000 million for special effects) and provides a much-needed 2000 million in cash flow. If the project succeeds, Fox, as the leading party, will still receive the largest share of the profits. In the event that the project fails to meet expectations, our preferred stock investment will bear the losses first, providing Fox with a risk buffer."

Fox's financial director was calculating rapidly.

"But copyright and merchandise revenue sharing are absolutely out of the question," Sam Aucoin stated firmly. "These are core assets for Fox. Box office revenue sharing might be negotiable, but there's no precedent for giving copyright and merchandise rights to an investor."

The subsequent negotiations entered the most arduous tug-of-war.

The two sides engaged in a heated debate on valuation, risk allocation, and return calculation methods.

David Cohen makes full use of his knowledge of Hollywood financial magic to refute point by point the unfavorable clauses that Fox is trying to impose on the definition of net income.

.......

The negotiations lasted from morning until late at night, and continued the following day.

On the afternoon of the third day, the negotiations entered the most crucial and deadlocked stage, with the final clash over copyright and revenue sharing for merchandise.

Fox refused to budge an inch.

Sam O'Connor even suggested that if Light Chaser insists on a share of the revenue from merchandise, Fox would rather seek other sources of funding.

Just when the atmosphere was about to break down, David Cohen unleashed his long-prepared trump card.

"Mr. O'Connor, Director Cameron," David's voice carried a hint of heaviness, "we all know that the true long-term value of a film often lies not in its box office, but in its transformation into a cultural asset, on DVD shelves, in online streaming libraries, on television networks, and especially in toy stores and licensed merchandise. We also know that Hollywood accountants can sometimes make a mountain of gold appear as a mound on the books. The Harry Potter lawsuit is still going on."

These words struck at the most sensitive and darkest corners of Hollywood, and the expressions on the faces of the Fox team members instantly became extremely unnatural.

Jiang Yu took over the conversation, speaking calmly: "Our demands for copyright and merchandise revenue sharing are not due to distrust of Fox, but rather a desire to establish a more transparent foundation for cooperation. To express our sincerity and to ensure that the interests of all of us are truly tied to the success of the project, we propose that the global marketing budget for *Avatar* be clearly stipulated and locked at $1 million. Furthermore, we will have a certain right to know and supervise the specific use of marketing funds and the auditing authority. This will ensure that the film receives sufficient market momentum while preventing marketing costs from becoming a bottomless black hole that devours profits."

Lock in the marketing budget! Investors have the right to oversee the process!

This suggestion was like a bomb dropped into the meeting room.

Sam O'Connor's forehead was beaded with sweat. The combination of this young Chinese man and this seasoned Hollywood producer was too precise!

After a long silence, Fox insiders began to discuss the matter in hushed tones.

Finally, Sam Aucoin, seemingly having made a great decision, slowly spoke: "One-third of the net box office revenue is negotiable. 15% of the revenue from copyrights and merchandise is impossible. However, given that your proposed technical solutions do indeed offer cost savings and provide a buffer against investment risks, we can consider a compromise: Light Chaser Pictures will receive 30% of the global net box office revenue, and 10% of the net revenue from copyright derivatives and merchandise sales. This is our bottom line. At the same time, regarding the $1 million marketing budget and limited oversight, we demand that it be written into an additional agreement. The specific scope and methods of oversight must be strictly limited to avoid interfering with Fox's normal business decisions."

30% box office revenue, 10% copyrighted merchandise.

Jiang Yu and David Cohen exchanged a glance.

David nodded almost imperceptibly. Based on his experience, this was the limit of what he could pry out of a long-established studio like Fox, especially given the project's budget overruns and the investors' hesitation.

Jiang Yu looked at Cameron: "Director, what's your opinion?"

Cameron paused for a moment, then said, "If this ensures the project receives sufficient funding to complete and doesn't compromise the final quality of the film or my creative control, I think it's acceptable. I need to guarantee that the quality and schedule of the visual effects portion must be the absolute priority."

"This is our promise," Jiang Yu said solemnly.

"Well then," Sam Auquan smiled with satisfaction, "in principle, we accept this framework: Light Chaser Digital will undertake the designated visual effects work for a total package price of $6000 million; Light Chaser will invest $2000 million in preferred stock, enjoying 30% of the net global box office revenue and 10% of the net revenue from copyright and merchandise; the global marketing budget is locked at $1 million. The specific legal documents will be completed by the lawyers of both parties within two weeks."

He extended his hand: "It's a pleasure doing business with you, Mr. Jiang, David."

Jiang Yu grasped his hand: "I definitely will."

David Cohen also wore a relieved and triumphant smile. This negotiation not only won amazing terms for the company, but also allowed him, a veteran of the previous administration, to prove his top value in the game of capital and rules in front of his new employer.

With the dust settled, a high-stakes gamble has officially begun.

That night, after seeing off the tired but excited team, Jiang Yu and David Cohen remained on the balcony of their hotel suite.

"Well done, David." Jiang Yu raised his glass. "Without your deep understanding of the rules of Hollywood, we wouldn't have been able to get these terms, especially securing the marketing budget and that 10% cut of merchandise revenue."

David clinked glasses with Jiang Yu, took a sip of whiskey, and let out a long sigh of relief.

"To be honest, Jiang, I never expected we'd get this far. Fox is genuinely terrified by the budget and Cameron's past record, and our combination of technology and funding hits right where they're most vulnerable. But..."

He looked at Jiang Yu, his eyes filled with admiration and a hint of inquiry. "The idea of ​​locking in the marketing budget was a stroke of genius. It's completely unlike the thinking of someone outside the industry."

Jiang Yu smiled, offering no explanation for the insights gained from his past life's memories, but simply said, "Because we genuinely want to make Avatar a success, not just treat it as a business deal. To ensure its success, we must establish mechanisms of mutual trust and transparency at every crucial stage."

Just then, Jiang Yu's phone vibrated. It was an encrypted message from Chen Jingming: "The signal has been confirmed on Wall Street. Lehman Brothers' CDS prices surged 47% today, and market panic is beginning to spread. Our hunting window has officially opened."

Jiang Yu's eyes sharpened, and he quickly replied, "Execute according to plan. Maintain secrecy and build positions in batches. Wall Street's profits are our ammunition for more Avatar-style high-stakes gambles."