[Chapter 260: New Cooperation]
After Linton turned down acquisition offers from the other six major Hollywood studios, as expected, each of the six sent representatives to express their interest in cooperation. Their proposals essentially involved investing in and distributing films produced by Linton Films.
However, these industry giants, already at the top of the film production hierarchy, carried an air of arrogance and superiority. Even when offering to cooperate, their terms were extremely harsh.
Take the distribution fee, for example. The commission demanded for North American film distribution was no less than 30%, which was actually worse than what Universal Pictures had offered Linton for his first film. To make things worse, they wanted a significant cut of the copyrights, treating him strictly like an industry rookie.
Looking back now, Universal Pictures had been really good to him. Their earlier partnership terms were relatively generous, and they weren't overly demanding during settlements. They could be considered a relatively good partner.
Linton ignored all these Hollywood giants who were solely trying to use their clout to squeeze benefits and dismissed them all.
But strategy had to be considered. He figured he could use this situation to negotiate better terms with Universal. He asked Megan to quietly inform Universal Pictures of the Big Six's acquisition and cooperation intentions, thereby increasing his bargaining power with Universal.
...
Sure enough, upon hearing this, everyone from CEO Lew Wasserman to the board of directors and distribution department at Universal became extremely nervous.
In 1994 alone, Universal Pictures' total revenue from collaborating with Linton Films exceeded $360 million, accounting for over 45% of Universal's total annual profit.
Such a valuable partner could not be lost under any circumstances. After several meetings, Universal proposed a cooperation plan and approached Linton for negotiation.
The first option was to acquire shares. Universal valued Linton Films at $3.5 billion and wanted to acquire no less than 20% equity at this valuation or exchange equity of equal value.
Naturally, Linton rejected this plan. With the company's recent capital expansion, its earnings capability had reached new heights. While $3.5 billion might seem astronomical to outsiders, it was far below his own expectations.
Moreover, he didn't want to release shares too early, as that would mean others influencing company decisions.
Still, cooperation had to be discussed. At this stage, Linton had to select one among the seven major Hollywood studios to engage in deep cooperation. Otherwise, if only his company excelled without backing from a major media group, it would be completely overshadowed by the established studios.
Based on good past experiences, Linton inclined to deepen cooperation with Universal to buy time for growth.
He appointed Robert to lead a business negotiation team to discuss specifics with Universal while Linton himself continued post-production on The Man from Nowhere.
...
With both sides eager to cooperate, after over a week of intense discussions, they finally reached an agreement shortly after post-production on The Man from Nowhere was completed.
The new cooperation plan had two main points.
First, Universal Pictures would handle overseas distribution rights for the next 10 films produced by Linton Films, with overseas license fees tiered based on the North American box office.
If the North American box office was less than twice the film budget, the overseas fee was set at 30% of North American box office.
If between 2 and 3 times budget, the fee was 35%.
If between 3 and 4 times, 40%.
Between 4 and 5 times, 43%.
Above 5 times, 45%.
Films starring Linton himself would receive an additional 2%.
However, Universal was required to exert their best efforts to help get the films past the MPAA rating board without bias, preventing unfair suppression by other six studios.
Second, over the next three years, Universal would have the right of first investment, not less than 30%, on any major production by Linton Films with a budget over $50 million. This arrangement was modeled after their previous partnership on the film Speed.
Both parties were very satisfied and quickly signed the agreement for deep collaboration.
For Universal, they were highly optimistic about Linton Films' production capabilities, especially their screenwriting talent. Judging from previous films, all had been high revenue and profit earners, with particularly strong overseas box office.
With this new agreement, even if Universal only handled overseas distribution, their profit source was guaranteed for the next three years. Plus, they had priority to invest in big projects. If a film like Speed or The Rock came out every year, their profits would soar.
For Linton, since his company lacked overseas distribution capability, selling overseas rights of the next 10 films at reasonable terms in exchange for full support from Universal was a good deal.
It was like securing an umbrella among the Big Seven studios in Hollywood, so before his media group grew stronger, he wouldn't have to worry about being crushed by the giants.
As for building his own overseas distribution capability, it wasn't easy and not on his immediate agenda. He planned to wait until his media group became stronger, perhaps in a few years acquiring one of the Big Seven studios himself.
After all, the Big Seven studios had been acquired in later generations; why couldn't he do the same? That would solve all problems.
---
Time passed quickly, and on January 20th, Linton finally completed post-production on The Man from Nowhere.
At the internal preview, everyone was amazed by the spectacular fight choreography.
Linton's moves in the film were both beautiful and brutal -- so stylish and handsome it was unreal.
For audiences accustomed to traditional or somewhat goofy action movies, Linton's cool, sleek, beautiful, and violent fighting was like a revelation.
The production staff all praised him.
"Boss, this film is incredible. The fight scenes redefine Hollywood action movies."
"Boss, you're so cool and handsome in the movie. After release, you'll be popular with both men and women."
"Especially the female audience -- they won't be able to resist."
The marketing team was even more confident.
"Boss, this movie is amazing. I recommend a summer release. North American box office will definitely exceed $200 million."
"Boss, if you make an action figure of your character, it'll sell like hotcakes -- at least $50 million in revenue. No female fan would resist buying it."
But Linton considered that he was about to reach the Celestial Presence stage. After that, he'd need to renovate his home base, set up protective arrays, and also gather and refine materials for his flying sword. He guessed he wouldn't be free for at least six months.
For a movie like this, if he couldn't promote it through roadshows upon release, the effect would be greatly reduced -- both commercially and for his popularity.
So he didn't set a release date on the spot. He decided it would depend on his upcoming schedule.
"I have other important commitments during the first half of next year and won't be available. You all should prepare the publicity and promotion plans. I'll announce the release date when the time is right."
*****
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