The entertainment empire began with Liu Yifei's premarital pregnancy.
Chapter 523 IPO Pricing
Extraordinary Film Company is not only his first publicly listed company, but also a company listed on the US stock market.
"Carter, why do I see you're even more nervous than I am?"
Lin Bufan turned to look at Carter Dennis and teased him with a smile.
"Boss, how can I not be nervous!"
Carter Dennis chuckled. He owned 800,000 shares of Extraordinary Film Company, equivalent to 0.8% of the company's stock.
Extraordinary Film Company split 1 million shares.
Next, the company will go public, and we'll have to see how the stock is priced.
Based on research by Goldman Sachs and other dealers, the company's share price was set between $5 and $10. The final price at the time of listing will depend on how much the market will subscribe to during this period.
If Extraordinary Film Company goes public and its stock price skyrockets, he will still have 800,000 shares.
However, if the company's market value reaches $10, his shares would be worth eight million dollars.
He's not like a boss with so many businesses that he wouldn't care about a few million dollars. In short, the higher the company's market value, the easier it will be for him to escape his current social class and truly enter the ranks of the wealthy.
"Let's wait!"
Lin Bufan shook his head slightly and said nothing more.
He was also nervously anticipating it.
Extraordinary Film Company is about to go public. We don't know how it will be priced, or even whether it will take off after the IPO.
"By the way, World War Z is releasing tomorrow, right?" Lin Bufan suddenly asked.
"Yes, Boss!"
Carter Dennis nodded.
The post-production special effects for the movie "World War Z" have been completed long ago and it can be released at any time.
The reason for setting the release date for tomorrow is to boost the stock price of Extraordinary Film Company after its IPO.
If he remembered correctly, the original World War Z grossed $25 million on its opening day. If it could surpass that number, it would meet his expectations.
Of course, the higher the box office revenue of a movie, the greater the boost to the company's market value.
What was the marketing budget for World War Z?
Lin Bufan looked at Carter Dennis.
"Twenty million US dollars!"
Originally, the initial promotional budget was only ten million US dollars, but in order to coincide with the company's IPO, the budget was doubled.
"Add another 30 million, and bring the budget to 50 million US dollars."
Lin Bufan's eyes flashed, and he made a decision.
From now on, Hollywood can no longer just look at box office revenue when making movies.
Compared to box office revenue, the stock market is where the real money is made.
Disney's future market capitalization is nearly $2000 billion, Universal's is nearly $1000 billion, and Warner Bros.' is relatively small, with only over $700 billion.
In short, the reason why the major Hollywood studios have remained so successful is because of their market value.
"Yes, Boss!"
Carter Dennis responded.
However, the movie will be released tomorrow, and it's uncertain how effective it will be to spend another 30 million US dollars on promotion.
However, one thing is certain: even a small boost to the stock market would bring in far more than thirty million US dollars.
"There's one more thing."
Lin Bufan looked at Carter Dennis: "After the company goes public, it cannot only focus on the film industry. It must also develop new industries, such as music and media."
In later years, the reason why the Hollywood Big Six were able to maintain such a large market value was because the companies' scope became wider and wider, and making movies is a high-risk industry.
The moment there's the slightest change in a movie, the company's market value is the first to be affected.
At its peak, Disney's market value reached a staggering $3600 billion, but it later plummeted to just over $1800 billion due to repeated setbacks in the film industry and the collapse of the streaming media myth.
For listed film companies, the market value increases if a film is successful and decreases if it fails.
Therefore, only by continuously developing new areas can a company deepen its competitive advantage in market value.
The wider the moat, the greater the company's ability to withstand pressure and risk to its market value.
Extraordinary Film Company can now focus solely on the film industry, but in the future, it must expand into the entire media industry.
"Yes, Boss!"
After responding, Carter Dennis hesitated for a moment, then looked at Lin Bufan: "But Boss, regarding other industries..."
He really doesn't understand.
In China, it's often said that different professions are like different mountains, and this is even more true in the West, where it's not just a mountain, but a whole Pacific Ocean away.
The main reason is language.
English words can be incomprehensible to people from different industries, who may not even understand what the other person is saying.
In China, everyone communicates in Mandarin. Even if you don't understand what the industry is, you can at least get a general idea from the words.
However, in the West, each industry has its own unique vocabulary, which people outside that industry simply don't recognize.
People from different industries may end up talking at cross purposes.
"I'll send someone to help you with that."
Lin Bufan nodded slightly.
He never imagined that he would hand over the entire Extraordinary Film Company to Carter Dennis alone.
Strong Wind investments have many checks and balances to prevent power from being concentrated in one person's hands.
The same applies to Extraordinary Film Company.
Carter Dennis is now the CEO and general manager of Extraordinary Film Company, and will continue to be so in the future.
However, when it comes to specific business operations, the power must definitely be divided.
"Mr. Lin!"
Just then, Bart Elvis, with an excited expression, hurried up to Lin Bufan.
"The price is out..."
Bart Elvis stood in front of Lin Bufan, took a deep breath to calm himself, and said: "The final listing price is set at $8.31 per share."
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