"Eric, Anthony Ferrante still won't compromise. He insists on a 5% gross profit share."
"Both Bema and I have talked to him several times, but it seems the box office success of the purge and the invitations he's received have given him a lot of confidence. In short, his attitude is very firm."
"Even raising his pay to $700,000 isn't enough. Ferrante's point is that other companies' contracts offer profit sharing."
"And as an elder who pioneered for the company, he feels dissatisfied and hurt that his treatment is not as good as outsiders'."
Inside the office, Warren reported on the recent progress of AK Films' work.
Eric chuckled coldly. He had seen too many ungrateful wolves.
Some people just don't understand the concept of knowing their place, otherwise, they'll trip over themselves.
"It seems he really thinks the film's success is his own doing. Since we can't work together, don't try to keep him. Tell him to get out!"
Since Warren came to report this today, it meant that he and Bema had given up on Anthony Ferrante.
He immediately nodded in agreement: "Bema and I feel the same way. We'll start looking for a new director."
"Hmm, do you have any candidates?"
"Yes, it's Kellen Ivory Wayans, the director we initially planned to invite for the first sharknado. Just as you said, a director who can make Scary Movie will definitely bring greater breakthroughs and wild ideas to sharknado."
"Wayans? Didn't he look down on sharknado?"
"People change, you know. Back then, he looked down on it because no one thought such a terrible movie could actually become popular. Now that we've advertised the job, many people will be scrambling for it."
"Also, in the first half of the year, excluding the purge, the company filmed a total of 15 movies. When we were busy, we had up to four crews working simultaneously, Eric. I think AK Films is a bit short-staffed. 50 people aren't enough."
Eric remembered that the initial goal for AK Films was to produce 20 knockoff films a year, but they had completed three-quarters of that in half a year.
However, transferring more staff from MGM was definitely not an option. There would be more and more projects there, and even the landlord was running out of grain.
"If you're short-staffed, recruit externally. You can hire according to actual needs and submit a report to me."
Warren took a sip of coffee: "Okay, next is the profit issue. The total production cost for 15 films was $12.37 million. Currently, 13 have been successfully sold, and the other two are being promoted."
"The gross profit is $34.99 million. After deducting production costs, taxes, and operating costs, the current net profit is $18.65 million."
"If these two films are sold, the net profit will definitely exceed $20 million."
Hearing the $20 million figure, Eric couldn't help but smile. A bunch of crudely made junk could bring him $20 million in profit in half a year.
Although it couldn't compare to excellent films, it was already a huge profit.
Especially for MGM, which needed money for various aspects now, he wouldn't mind even an extra cent.
Assuming the workload in the second half of the year remained unchanged, a net profit of approximately $40 million a year would already be comparable to sharknado.
This money could be used to support the development and research of Facebook, YouTube, and Lionheart Network, at least until the end of this year.
More importantly, it was a guaranteed profit with no risk of loss. How many such good businesses existed in the world? No wonder other companies were also interested in this path.
"Warren, you've been in the industry for almost a year now, managing a company. How does it feel?"
Warren hesitated for a moment: "I feel like I've learned a lot. At least I understand the production process and distribution of a film very well, and I also have my own opinions on the market."
"In short, I've matured. At least I won't be as flustered as when I first started. Everything has its own process."
Eric looked at him with a smile: "Maturity is a good thing. Maturity means you can take on more responsibility. Have you thought about taking on a bigger burden?"
"A bigger burden? Eric, are you referring to...?" Warren's eyes slowly widened.
"I plan to establish another film company, still independently operated, not nominally affiliated with MGM, but actually the same as AK Films."
"This company will not make knockoff films, but independent films, focusing on niche genres or art films such as religion, cults, gender identity, and horror. In short, what big studios don't do, the new company will."
"If I asked you to leave AK Films and manage this new company, do you have confidence?"
Hearing that he was to manage a new company, Warren's mind immediately rang like a loud bell.
He was no longer the naive rookie he was a year ago; he could see many things more clearly.
Especially after being with Bema Hardy, she often imparted workplace experience to him.
The last time at the cinema, he and Bema met Eric and Nicole. Bema Hardy was worried that their relationship would be suspected by Eric.
Although Eric seemed very generous and didn't show any signs of suspicion, it more or less affected Warren's judgment.
Now, a big responsibility, or rather, a coveted opportunity, suddenly fell into his lap, and it would be false to say he had no doubts.
Was Eric testing him? Was Eric trying to separate them? Or did he really trust him?
But with his qualifications and abilities, there were clearly more suitable candidates within the company. Moreover, good things always fell into his lap. How would Judy, Billy, and Bordeaux, who came out with him, view it?
"What are you thinking? Why aren't you speaking?"
Seeing Warren in a daze, Eric asked.
"Eric, although I have a year of experience, I still feel that my abilities are insufficient. To manage a company on my own now, I'm afraid I won't be up to the task."
Taking a deep breath, Warren still refused the big pie.
"What? No confidence in yourself? In the company, I trust the four of you the most, but Billy is too restless and can't sit still. Perhaps in a few years, when he settles down, he can take on greater work."
"Judy can't be moved for now; I have other arrangements for her. Bordeaux's performance in the marketing department isn't outstanding, so I need to change his position to tap his potential."
"I've seen your work performance this year. If you don't have the confidence to take over the new company, you can continue to stay at AK Films."
"However, I still need to add to your responsibilities. You must carry AK by yourself. I plan to transfer Bema to the new company; her ability to support a new company on her own is not a problem."
After Eric finished speaking, Warren's serious expression disappeared, and he immediately smiled.
It seemed Eric was not suspicious of him and Bema, but genuinely trusted them. Otherwise, he would definitely continue to test and then make him leave.
The two chatted for a while, and Eric told Warren to inform Bema so she could be mentally prepared.
After seeing the fat man off, Eric leaned on the sofa, considering the new company. It was definitely going to be established.
Why do Hollywood's major studios all have their own independent production and distribution companies? The reason lies in the inherent contradiction between commercial and independent films.
To make money, films need to be rated as G as much as possible, meaning they can be watched by everyone. Such films generally do not contain profanity, gore, violence, or abuse.
G-rated films are given the green light all over the world, even in the Middle East, without even needing cuts.
Independent films or art films, on the other hand, are almost all R-rated, let alone conservative countries in the Middle East.
Even in the United States, some overly explicit ones cannot be screened and can only be released on video tapes.
And a large film company, if it produces and distributes too many R-rated films,
it is highly likely to be blacklisted by some countries due to certain taboos, such as blasphemy or lesbian themes, and subsequently completely banned.
The consequence of being banned is that even the G-rated films produced by that company cannot be released in that country, an outcome that many film companies find unbearable.
For example, Marvel's Shang-Chi: Legend of the Ten Rings. Disney's arrogance caused all Marvel films to be implicated and banned by China, and relations only eased after a new president took over.
So, big studios need a subsidiary as a fig leaf. Although everyone knows they're from the same mother,
if the younger brother is banned, the older brother is generally unaffected. This is the main reason why many large companies establish independent subsidiaries.
In addition, the new company Eric is setting up will be independently operated, not a subsidiary, also to facilitate control after the company goes public in the future.
It's important to know that once a company goes public, it's no longer solely yours. Even as the largest shareholder, your equity will be significantly diluted.
And as the group develops, the equity will be diluted more and more.
For example, in the Samsung Group, Lee Jae-yong actually owns less than 2% of Samsung's shares, yet the vast Samsung Group is under his command. Why?
Because Lee Jae-yong plays the game of nested shareholding, which is also how many wealthy individuals control companies.
For example, if Company A has a market value of 1 trillion, and Company B is the largest shareholder of Company A, then controlling Company B allows control of Company A.
But Company B has a market value of 500 billion, which is still too high for most people, so Company C emerges.
Company C is the largest shareholder of Company B, and its market value is only 100 billion, shrinking the magnitude by 10 times.
But 100 billion is still too much, so the nesting continues, and Companies D, E, F, and G appear.
Until the emergence of Company H, the largest shareholder of Company G, and Company H's market value is only 1 billion.
1 billion is affordable for a wealthy person, so he becomes the largest shareholder of Company H.
Finally, he can control the large Group Company A by controlling Company H, leveraging 1 trillion with less than 1 billion.
When MGM, Facebook, YouTube, and Lionheart Network go public in the future, their market value might exceed a trillion in ten years.
Eric, who wants to maintain control over these companies, will also need to follow this path.
Establishing some subsidiaries in advance to set up nested shareholdings, step by step, will solidify the foundation and prevent enemies from exploiting loopholes.
Time flew by, and in a blink of an eye, it was early July.
the purge's final week of large-scale screenings, with less than 800 cinemas still showing it.
The last major overseas box office, Japan, also opened a few days ago.
Surprisingly, the purge was well-received in Japan, with a Yahoo Movies rating of 9, much higher than the sixty or seventy points it received in other countries.
Many comments mentioned that it drew inspiration from battle royale but was filmed with distinct American characteristics.
Excellent! My master finally accepted my ideas and creativity. I must support it!
This is a gift from a father to his son, absolutely fantastic!
Although it hasn't finished its first week of screening, it is expected to easily surpass $20 million.
Currently, the purge has a North American box office of $93 million, an overseas box office of $37 million, and a global box office of $300 million.
MGM Building, house of cards was holding auditions.
Eric, Andrea, Julio, and two people from the casting company were seated there.
Today was a comprehensive audition to select several important roles, but the most crucial was the casting of the female lead, Claire Underwood.
Her age needed to be similar to Kevin Spacey's, and her acting skills had to be on point.
Eric had once considered inviting Julianne Moore; she met all the requirements.
Later, he decided against it. One Oscar-winning actor was already difficult to manage, and adding another Oscar-winning actress might cause more trouble in the future.
So, he simply held open auditions, inviting anyone with talent who wanted the role to try out.
However, Eric heard that many interested actresses backed out after learning they would be acting opposite Kevin Spacey. Those who dared to show up today were genuinely skilled.
"Thank you, Hatcher."
As Teri Hatcher left, Andrea looked at Eric: "I think Hatcher can handle it, both in terms of image and acting."
Eric shook his head slightly: "Let's put her on hold. Her short haircut is too severe; she looks more like a killer than a politician."
"Next!"
The door opened, and another short-haired mature woman walked in. Like Teri Hatcher, it was Felicity Huffman, who would later become a Desperate Housewife.
After trying a few looks and performing a scene, Huffman left.
Everyone else looked at Eric.
"Her acting is okay, but her look still doesn't match the image I have in mind. She's too soft. Hatcher had too much killing intent, and she lacks it."
"Next!"
The 15th short-haired mature woman came before the interviewers, Cynthia Nixon from sex and the city.
She elegantly performed a scene and shared her understanding of the character, gaining everyone's approval, expanding the 'on hold' list.
Soon, the audition continued for another hour, and as the 26th actress walked in, the person Eric was most looking forward to appeared.
Robin Wright from Forrest Gump. The 37-year-old Robin Wright and Kevin Spacey looked good together; it was just a matter of her acting skills.
"Robin, what kind of person do you think Claire is?"
"Independent, intelligent, calm, and full of ambition. She's more like a partner to her husband, a trait more prominent than their marital status."
Eric nodded: "Do you usually like to watch the news? Do you pay attention to politics?"
Robin Wright smiled and retorted: "Director, don't you know Hollywood is the Democratic Party's stronghold?"
Everyone couldn't help but smile; this was indeed a long-standing tradition.
"Alright, you're very confident, and I like confidence. Politicians are all confident. Let's try a scene."
Julio cooperated by reading lines, and Robin Wright instantly got into character, her expression changing and her entire demeanor shifting.
Five minutes later, a short scene ended, and she immediately switched back, grinning as she asked: "How was it? I practiced very diligently at home."
Eric stood up, walked over, and extended his hand: "Welcome to house of cards!"