The director starts by learning from the abilities of renowned directors.
Chapter 34 Valuation
Since "Taken" grossed over 100 million yuan, peace and quiet have become a luxury for Shen Qing.
Every day, the phone rang, and companies came knocking on the door. It seemed that overnight, every film company with any connections had its eye on Shen Qing's next movie.
Shen Qing found it difficult to directly refuse some of the companies that approached him.
For example, Shanghai Film Studio.
For example, Zhejiang Film Group.
For example... some companies that are not well-known but have a significant background.
Shen Qing consulted Han Sanping and got a rough list, deciding which ones should be given a share, which ones could be directly rejected, and which ones could be provided with resources, etc.
So Shen Qing invited several companies that were not easy to reject directly to Dingxin Film and Television for negotiations.
Shen Qing's own Magical Films was too rudimentary and too small, and he had a close relationship with Dingxin Films, so Dingxin naturally became his first choice.
The fact that the negotiation location was chosen to be Dingxin made Zhao Hongwei extremely excited, as it meant that Dingxin would definitely have a share in Shen Qing's next movie!
While it's not easy to refuse outright, it doesn't mean we should just hand out money. Since so many companies are eager to come to us, it's obvious who has the upper hand. Therefore, Shen Qing's value as a screenwriter, lead actor, and director has to be reassessed, or even overvalued.
If any company feels that Shen Qing's asking price is too high and there is already a great risk of loss, and wants to withdraw, that is purely a market behavior, not because I, Shen Qing, am not giving you face.
Dingxin Conference Room.
Shen Qing and representatives from several companies quickly reached a consensus on the investment amount for "Ip Man" during their first meeting.
Total investment: 3500 million.
If this investment is to be recouped solely through box office revenue in the mainland Chinese film market, it means that the box office revenue would need to be at least 100 million yuan to avoid losses.
The problem is that the market currently does have genuine confidence in Shen Qing.
Moreover, movies aren't only made in the mainland market, and they don't rely solely on box office revenue.
The North American and European rights to "Taken," including DVD and television rights, were sold for a total of $1100 million. Including Southeast Asia and South Korea, the overseas rights to "Taken" were sold for a total of $1800 million.
If you calculate it this way, investing 3500 million in a movie isn't actually that much!
The point of contention lies in the valuation of Shen Qing's non-cash investments.
Shen Qing proposed that his Magical Films contribute 750 million yuan in cash, plus Shen Qing's value as screenwriter, director, and lead actor, to jointly account for 5% of the film's share. This proposal was met with almost unanimous opposition from all parties present.
总投资3500万,5成份额的价值就是1750万,沈青公司拿出750万就占5成份额,也就是说沈青的编剧、主演、导演价值1000万?!
No, no, that's way too high!
"700 million is not a small amount. Director Shen can also choose not to invest and directly take a 2% stake based on his value as screenwriter, lead actor, and director. For a 3500 million project, a 2% stake is not a small amount."
"To acquire a 5% stake, at least 1000 million yuan in cash will be invested."
"If the non-cash equity stake is too high, the project risk will become uncontrollable."
Only Zhao Hongwei of Dingxin sided with Shen Qing, and the first meeting ended in a stalemate.
To own 20% of the shares without investing any money is only 7 million yuan out of 35 million yuan, which is too low.
The meeting lasted from 10 a.m. to 3 p.m., with the representatives from each side talking past each other. It seemed almost impossible to reach a preliminary consensus that day.
As the meeting drew to a close, Shen Qing listened to various complaints about his exorbitant prices and felt compelled to speak his mind.
"I value my non-cash investment at 1000 million. It is indeed not low in absolute terms, but everyone should also see that this 1000 million actually includes the value of the screenwriter, lead actor, and director. Zhang Ziyi's salary alone is already 1000 million. No matter how high the box office of 'Hero' is, it is not Zhang Ziyi's responsibility alone. No matter how good the box office of 'House of Flying Daggers' is, Zhang Ziyi is not irreplaceable. But her salary alone is worth 1000 million."
Shen Qing looked at the representatives from various companies in the conference room and continued:
"Taken is still showing in theaters, and its box office in mainland China has already exceeded 1.1 million yuan. The overseas rights alone sold for 1800 million US dollars. Although its performance isn't as good as Hero or House of Flying Daggers, Taken is my own film; my role is irreplaceable. I was the one truly responsible for its box office success. The same applies to my new film. I'm the screenwriter, lead actor, and director. Is a valuation of only 1000 million yuan really too high?"
Shen Qing's gaze swept across the faces of everyone in the conference room, and the room fell into an unusual silence, with no one willing to speak easily.
Zhao Hongwei seemed about to speak, but Shen Qing stopped him with a gesture. Shen Qing then said:
"With such a large project, the risks are indeed not to be underestimated. It's normal that we can't reach a consensus right away. We can talk slowly. I believe that my true value as Shen Qing is will become clearer over time. Personally, I think the valuation of 1000 million is actually an undervaluation. If everyone agrees, we can sign the contract quickly. If we continue to talk slowly, and the market changes in my favor, it may not be something that can be settled for 1000 million. I may have to increase the price on that basis later."
……
The film industry is only so big, and everyone knows each other. After the meeting, the representatives exchanged a few words before parting ways. What everyone was most curious about was what Shen Qing meant by the market changes that were favorable to him.
"Does it refer to performance in overseas markets?"
"I guess so too. I heard that Taken is about to be released in North America. If this movie really achieves a great box office result in North America, it can become a very useful bargaining chip for Director Shen."
Will that movie really be a box office hit?
"It's hard to say. It's already been released in some Southeast Asian countries, and I heard it's doing quite well at the box office."
"The most recognized type of Chinese film overseas is kung fu. If Director Shen really gains international recognition with 'Taken,' it's not impossible for the film to be valued at 1000 million, let alone 5000 million."
"Overseas recognition of Chinese kung fu films is mainly based on Jackie Chan and Li Lianjie's kung fu films. It's not that easy to gain international recognition."
"If Director Shen really gains international recognition, I'll raise his price myself without him even having to ask."
"Let's wait and see what the North American box office results are. Once they're out, I think Director Shen's enthusiasm will subside."
"They're still too young."
……
Since its own valuation has not been recognized, the investment share of "Ip Man" cannot be agreed upon for the time being. Shen Qing is not in a hurry, so he will just drag it out for now. "Taken" will be released in North America on August 26, with a large opening scale. He will continue to discuss it after the results are in.
If the results are good, it would be normal for Shen Qing to ask for a higher valuation.
Since "Ip Man" can't be done for the time being, let's start by drawing a comic book version of "Inception". Shen Qing inherited his artistic skills from Zhang Yimou, and after buying a few comic books on the market to study, he can start drawing.
The success of the comics after they were released was irrelevant; Shen Qing's goal from beginning to end was to control the IP.
Before they knew it, it was August 26, 2005. Taken officially landed in North America. Shen Qing was so focused on Inception that he completely forgot about it.
It doesn't matter if he forgets; many people are keeping an eye on things for him.
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