Exploitation Hollywood 1980

Katzenberg did not keep his old friend waiting too long. He had originally communicated with Spielberg in the past few years and wanted to imitate the way Chaplin founded United Artists and create a company for artists.

The film company where we filmed.

But the most taboo thing in Hollywood when making movies is using your own money. Although the two of them are already rich, if they invest in movies carelessly, they may lose a lot of money.

Because of the problems of attracting investment and risk control, their wish has never been realized.

In the first half of the year, together with David Geffen, who was testing the waters of the film market and getting good results, the three of them planned to use their best parts to form a combination.

Katzenberg's animated films and small and medium-sized live-action films, Spielberg's special effects films, and David Geffen's competitiveness in the record market.

This proposal, which was previously interrupted due to the accidental death of a Disney executive, was restarted at a very fast pace after Katzenberg resigned.

Within three days, they received an investment of US$500 million from a super-rich person, an investment of more than US$300 million from another super-rich person, and an advance payment for the right to distribute the new company's films in the Asian market (excluding Japan).

loan of US$100 million.

In addition, Spielberg, Katzenberg, and David Geffen each contributed US$33 million, and a total of US$1 billion was collected, and the newly baked "Dreamworks SKG" was released.

Since there were no previous loss-making projects, the US$1 billion was all in cash. For a time, the newly established DreamWorks' filming funds were comparable to those of major studios with a history of 70 or 80 years in the industry.

"Where did they get the money?"

Ronald muttered. Although it has only been three days since Katzenberg resigned, money is no longer a problem for this new company. Various news in the industry indicate that after decades of waiting, another

A studio led by artists rather than businessmen has appeared in Hollywood again.

"Do you know Microsoft?" Ed Bastian smiled bitterly. He didn't expect that these three people could actually find an investment from a big investor who didn't care about the return.

"Of course..." Ronald glanced at Ed. Could it be that Bill invested in it?

"Do you know one of Microsoft's early founders and shareholders, Paul Allen?"

"I don't know..."

Ronald looked at this person's background information. He was originally Bill's senior brother and the second-in-command at Microsoft. It was only in 1982 that he was diagnosed with a rare disease, but fortunately, he had an even rarer disease.

This type of Hodgkin's disease can be cured with radiation.

After that, he withdrew from the business and became a recluse, but still gave a lot of money to support art, music, sports, and many charities.

When he resigned from Microsoft, he owned 28% of the shares. In the following ten years, Microsoft's rapid growth allowed his wealth to increase at a very fast rate. By last year, Forbes had calculated that he had more than 9 billion US dollars.

of wealth.

He himself is also an avid collector of Jimi Hendrix's guitars. It is said that his playing level is very good and his style is very close to Jimi Hendrix himself.

In 1988, he bought the NBA's Portland Trail Blazers and the Rose Garden for $70 million.

Judging from his investment history, it can be said that he largely relies on his own interests and hobbies. There is no fixed direction.

For such a super-rich man who has no desires, does not run his own business, and invests purely based on personal preferences, he supports three artists who have achieved great success in Hollywood and the recording industry in the past decade to establish a company.

It is understandable for studios to pursue more and better artistic films.

"But that's only 500 million. Who is the other one?"

"She is the granddaughter of a super rich man from Korea..."

"Forehead……"

Ronald was stunned when he heard this. He was another investor who did not follow common sense. Who would have imagined this?

The third-generation rich man who spent the remaining US$400 million is the granddaughter of Lee Byung-cheol, the founder of Korea's Samsung Company. This woman, Miky Lee, is the eldest daughter of Lee Byung-cheol's eldest son, Lee Meng-hee.

After receiving a bachelor's degree in home economics from Seoul National University, Miky Lee went to Harvard University to study for a doctorate in East Asian studies in 1986, and finally graduated with a master's degree. Then she went to the famous Huaguo University near Jiangwan to continue her studies.

Study Chinese literature and history.

She had just graduated this year and returned to Cheil Jedang, a company owned by Samsung Group that had existed since the Japanese occupation, as vice president. She began to promote this company, whose English name is CJ Group, to enter the entertainment industry.

So in order to satisfy her granddaughter’s desire to hone her skills and build a career, Miky Lee obtained the authorization to let CJ Group invest US$300 million in the newly established DreamWorks, plus another US$100 million to monopolize the distribution rights of DreamWorks in East Asia for the next five years.

Dollar.

"No wonder, the eldest granddaughter of the largest enterprise group in Korea..." Ronald was amazed. This Samsung company really has the characteristics of Korea, sparing no effort to cultivate future generations.

Thinking back when she wanted to start a business and make money, Aunt Karen and her good friend Douglas Jr. finally got themselves an ordinary second-hand camera.

People just can't compare...

This is very interesting. I am also a director and producer who has made great achievements in Hollywood. Why doesn't such a good thing come to my door?

Ronald looked at the photos of the three founders of DreamWorks and understood a little bit. Except for David Geffen, Spielberg and Katzenberg were not the kind of businessmen who were very good at making money.

This chapter is not finished yet, please click on the next page to continue reading the exciting content! But perhaps it is this relatively pure temperament of artists and producers in Hollywood that allows them to find investments like Paul Allen and Miky Lee

people.

If other people were to find Paul Allen, Hollywood's approach of exaggerating one point to ninety-nine points would have long since scared away investors like Allen, a hermit with an artistic temperament.

"Dreamworks SKG, this SKG is composed of the initials of Spielberg, Katzenberg, and Geffen."

Ronald also felt the status and power ranking of the three founders in the company from the abbreviation in the company's name.

Spielberg's big projects have the strongest ability to attract money and have the strongest appeal in Hollywood. Katzenberg originally used Disney's platform to climb to the top ten in the power list. Now as the manager of a new company, those visions

His ability is still there, but it is estimated that it will not decline much. Geffen is completely a fancier. Although the linkage between movies and records may make money, records will always be in a subordinate position, and he does not have much commercial irreplaceability.

.

Sure enough, Ronald's guess was correct. At the establishment press conference held a few days later, the seats of the three people and the order of their speeches confirmed his guess.

Katzenberg is still sitting in the middle. Spielberg and Geffen both have their own businesses and will not spend too much time on management. Katzenberg, as the weakest among the three, naturally wants to

Take on more management responsibilities.

"Extract a genius behind the scenes of Jurassic Park, the most profitable movie in history, Spielberg. From behind the scenes of this year's highest-grossing animated film, we also extract a genius behind the scenes, Katzenberg. Again

What would happen if you take David Geffen, a billionaire from the record industry who has signed a lot of pop bands, and put them together?”

In the TV station's live press conference program, the director hurriedly assembled the masterpieces of the three founders, and then cut to the scene.

In a very simple room, the three founders were all wearing shirts, except for Katzenberg, who was without a tie, focusing on an artist style that is now popular in California.

"When I see the three of us, I think, this is a dream team. At least it's the dream team in my heart..."

As the "poorest" one, Katzenberg has more to say, and he is mainly responsible for answering various questions raised by reporters about the new company.

"This will undoubtedly bring about a major reshuffle in the industry, whether it is market share or profitability. The new company created by these three outstanding talents together will reshape the horizon of Hollywood."

The "experts" at the scene began to speak good words for DreamWorks. In short, the three of them together, the powerful alliance, and the support of Microsoft and cable TV tycoon John Malone, will definitely be unfavorable in the film and television industry. Those who are already stupid

Big studios will definitely have a hard time in the next competition. Their profitability will definitely decline...

There is also an expert who is a Wall Street analyst who specializes in studying the stocks of companies in the film and television industry. He also mentioned that one of the characteristics of this new company is that it will be a national film and television group once it is established.

DreamWorks will develop its efforts in five areas: movies, television, animation, records, and the latest interactive media (that is, those multimedia CDs produced by the company that Bill Gates hired Ronald).

In contrast, some small and medium-sized media groups that are subject to geographical restrictions will have a greater impact on their stock prices and will no longer be able to maintain the high price-to-earnings ratios of the past.

"You can flatter me all you want, but why do you step on me halfway?"

Ronald angrily wrote down the name of this "expert". DDH Media could no longer provide any interview opportunities to such people.

"David Geffen's Geffen Records and Spielberg's Amblin Pictures will cooperate and borrow the new company's business channels in this new company that will begin operations next year."

Ed Bastian smiled and wrote down the name of this brainless expert, and he continued to listen to the press conference. Geffen and Spielberg are both people with industries. It seems that their old companies will not merge.

Enter the new DreamWorks, but operate in a joint model.

Because Spielberg has a long-term cooperation agreement with Universal Pictures, he will continue to produce movies for Universal and other studios as a director.

"Um……"

Ronald and Ed Bastian looked at each other. This was not a good sign. The three people's investment in DreamWorks was completely different. The most valuable thing in this new company was not the 33 million each of them.

The investment is not the nearly 900 million US dollars invested by the other two rich people, but the talent of the leaders in these three industries.

If these talents cannot be brought into DreamWorks, then this company is not worth taking too seriously. It is conceivable that there will be many situations where you are fighting against yourself.

Spielberg will make another Jurassic Park for Universal. What will happen to the DreamWorks movie in the same period? DreamWorks' movie will release a soundtrack album, but what if there is a conflict with David Geffen's record company?

If these conflicts are not resolved, DreamWorks will end up with only second-rate resources. At least in the first few years, it will not have any major impact on the market structure.

There is only one situation worth worrying about, and that is if Katzenberg, a talented person with strong operational capabilities, truly operates DreamWorks as a media group. Unify the capabilities of the five departments at the group level and let them

Help each other, rather than tear each other down.

Thinking about the motley crew of executives at the major studios, DreamWorks working together like this will be a big threat.

"Who has the final say among them? Katzenberg?"

Ronald keenly discovered the key to the problem. Katzenberg was sitting in the middle of the three people. He was obviously going to play the role of the main manager in the future.

But Spielberg has no interest in management. David Geffen has the weakest resources to contribute, but he is a guy who likes to take advantage. If Katzenberg wants to be able to integrate resources, he must be given appropriate power.

No.

"The three founders share the equity equally and have the same responsibilities for operation and management..."

"Are you kidding me?" Ronald blurted out. The three of us shared the responsibilities equally, and in the end no one must bear the responsibility.

"These three people are nothing to worry about. In time, there will definitely be big problems." This was Ronald's judgment.

"But US$1 billion is US$1 billion after all, and it has worldwide issuance capabilities as soon as it is established."

"Hmm...", Ronald thought, and it was right. This 1 billion US dollars would be lost for several years even if it were spent on a prodigal son. What's more, these three are all very capable people. In addition, Korea's CJ Group

Taking charge of distribution in Asia means that DreamWorks has had strong overseas financing capabilities since its establishment.

Coupled with the bank bridge loans brought by domestic distribution, it will be easy to shoot big-budget movies with big stars in the first few years.

"I would also like to thank Mr. Michael Eisner. If it weren't for him, I wouldn't have the opportunity to sit here and do these things."

Katzenberg did not forget to question his old boss at the press conference. Speaking of which, Katzenberg must have a horizontal competition agreement, and Eisner did not hinder him. Katzenberg learned about interesting things.

Later, the legal obstacles were lifted along the way.

"We still have to find a way to reverse the inevitable impact on DDH's stock price in the short term." Ed Bastian made some calculations. The market often does not take a long-term view like his boss.

Major studios will have their profits diluted by the addition of new competitors, and regional media groups like DDH will also have their valuations lowered by Wall Street and need a piece of good news to hedge."

"What do you think?", Ronald asked.

"I heard that the eldest princess of Samsung's ambition is not limited to her admiration for Spielberg..."

"Yes, you can contact her, but..." Ronald hesitated for a while, "What I need in the box office market in Hong Kong and the Mainland is to strengthen rather than find an agent..."

"In that case, our agreement with her won't be too valuable..."

"It doesn't matter, it's just a cooperation. Wall Street only wants this." Ronald still had doubts about such a partner, so he signed a distribution agreement with CJ Group in Korea, Japan, Hong Kong, and Asia outside the mainland.

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