Reborn in America, I'm serious about making money.
Chapter 306 Global Entertainment That Doesn't Make Money
To deal with the villa, Zhang San had another option: rewards. Robert, the president of Global Entertainment, was rewarded by the group with a large villa from Stephen Realty, worth ten million US dollars, for his outstanding performance. This villa could be described as a villa within a villa.
However, since Zhang San took over Global Entertainment, it has basically been in a state of no profit.
Although the company has launched the Marvel Universe series, the Pirates of the Caribbean series, the Potter (Harry Potter) series, the Conjuring series, the Serial Killers series, and so on, it can be said that it has made a lot of money. However, as everyone knows, film investment is a high-risk industry.
Even with these series, the investment is still substantial, basically two to three times that of the previous life. Naturally, it can be said that not only do the production companies not make much money, but the distribution companies also don't make much money. The distribution company is Global Entertainment, which not only participates in the production but also in the investment. It can be said that they are very large-scale operations, and there are many such cases.
In addition to these, Global Entertainment has also been involved in many strange investments. Srui Pictures produced Ocean Rim, then Ocean Rim 2, and after that, Ocean Rim 2 2.
Both films made money; Ocean Rim made money from both box office and critical acclaim, while Ocean Rim made money from both. However, due to their high investment costs, neither of them actually made a profit.
Not only that, their Potter series, which grossed over six billion US dollars worldwide, actually lost one hundred million US dollars, which is shocking.
Their stated reason was that the initial investment was too large. Promoting the book and building momentum for the novel was a huge expense, and the revenue sharing from the novel did not cover the promotion costs. In addition, in pursuit of perfection, they had to increase investment. Although they lost a lot, they could recoup the losses in other ways, such as selling broadcasting rights and recovering revenue from DVDs later.
Although we lost money, we tried our best, and everyone should believe in us... I originally wanted to add this sentence, but then I thought, forget it, we're not a listed company, why add it? This is just an explanation for the IRS. We have data, invoices, cooperation, and... everything is based on data.
Moreover, global entertainment companies have a large amount of debt, especially in the last five years, with even more debt. The main reason is that interest rates are low now, and they have invested a lot of things, so they are more likely to pay less tax.
In particular, they also have a waste disposal fee, which is necessary for filming. Naturally, they need to build sets, and this cost is not low. Of course, after filming is finished, the waste still needs to be disposed of, so they have to pay a fee to restore it to its original state. This is for environmental protection.
Zhang San happens to own an environmentally friendly demolition company that meets the other party's needs...
However, it is an undeniable fact that the global entertainment industry is growing stronger every day, even with many loans and no profit every year.
However, there is another company—MC Entertainment, whose predecessor was the once-famous Jingqi Comics.
Today, the company has been acquired and become a subsidiary of Global Entertainment, with a changed business scope, focusing solely on comic book production and venturing into film production.
Nevertheless, they still managed to make a profit over the past few years. Although the returns weren't huge, they still achieved something.
MC Entertainment's main business includes the production and distribution of comics, film licensing, and participation in film production. Despite relatively low investment, they have successfully achieved profitability through high licensing fees and the global popularity of their comics.
In the entertainment industry, Zhang San's other company, Naifei, after restructuring, is now officially called NET ENTERTAINMENT, or simply NET Entertainment.
This internet entertainment company can be said to have weathered the crisis and ushered in a new spring. After Zhang San managed to inject a large amount of film library, coupled with more favorable prices and supporting logistics, it has been widely welcomed. Baishi Rental now only has one store still open, and all the other stores have been closed one after another.
However, this internet company is about to go public. Before the IPO, Zhang San had already withdrawn a large amount of cash according to the dividends, and also borrowed a lot of money. This money was used for the company's construction, as well as the provision of content, including self-produced dramas. This was a huge expense, but after the dramas were broadcast on TV, most of the costs were recovered, and then they began to be marketed overseas, and later broadcast on online entertainment platforms.
The former Naifei, now NetEase Entertainment, has become a darling of Wall Street, and NetEase Entertainment has decided to conduct its final round of financing.
Currently, the major shareholders of Netru include a family entertainment company, global entertainment, Sirui Pictures, and several trust funds. The final round of financing will bring in capital from companies such as Jinsheng, Meisen, and Hongshan.
This final round of financing is not only a celebration for the investors, but also for the employees. After the financing, they will receive stock options to varying degrees. At the same time, it is also a way to build relationships and do favors so that they can repay those favors when the company runs into trouble in the future.
Besides those large funds, there are also many unknown funds that will become investors.
"These investors who have come in are something we have no choice but to do. They will become our strategic allies. If nothing goes wrong, all will be well, but if something does go wrong, we will need them to step up and help us."
After listening on the phone, Zhang San said, "I don't mean to blame you. Since they owe you a favor, they should repay it with something of equal value. So, we should remember these people and maintain good relationships with them. We can't give and then mess things up."
"Oh, boss, I didn't know you knew so much about North America. You're an American Marketer."
"Of course, no one knows Americana better than me." Zhang San became somewhat proud, feeling that he had done a pretty good job with this matter.
"Having a boss like you is really great. I'll handle this." The voice on the other end of the phone added, "Boss, you absolutely have to take me with you to the next World Cup. I'll borrow your luck and win some pocket money."
"Okay, okay, that was just luck. But I'll invite you to play a few rounds together. Don't blame me if you lose, haha..."
"Of course, boss, but congratulations anyway, you're so lucky, it feels like you're related to Lady Luck."
"Wow, that's so cool..."
Zhang San couldn't understand how his situation had become so widely known, seemingly known to everyone and even spread across the globe...
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