Chapter 291 MGM Cooperation
The decline in sales of "Silver Hand" also made Liu Hongmin feel a sense of crisis. He had to think carefully about the next sequel, and at least maintain sales of 30 million copies. Only in this way can the royalties keep the red line of 100 million US dollars.
"By the way, Mr. Liu, MGM is looking for me and wants to talk to you."
MGM? One of the eight major film studios in Hollywood.
"What does MGM want from me?"
“It’s a collaborative thing.”
"Cooperation?" Liu Hongmin was even more puzzled. "If it's a cooperation in film and television, they should directly contact Mingtian Film Company. Why are they looking for me?"
"I don't know about that." Richard said, "If you don't want to see them, I will refuse for you."
Liu Hongmin thought for a moment and said, "You can ask them to come to Hong Kong! Ask them to contact Mingtian Film Company, and I will go to meet them then."
"it is good!"
Richard agreed, "I'll inform MGM."
Within two days, Wang Yaowei informed Liu Hongmin that "MGM representatives have arrived in Hong Kong and are now staying at the Peninsula Hotel."
Liu Hongmin nodded and said, "Please invite them to the company tomorrow, and I will go there then."
The next day, Liu Hongmin went to Tomorrow Film Company and met with representatives from MGM in the conference room.
"Mr. Liu, we are here to reach a cooperation with you."
Wang Yaowei then asked: "Gentlemen, if it is just film and television cooperation, just talk to us."
"No!" MGM's CEO said quickly, "The content of our cooperation has exceeded the scope of business with your company. That's why we want to talk directly with Mr. Liu."
Liu Hongmin became interested and asked, "How would your company like to cooperate?"
The CEO of MGM said: "We want to reach an in-depth cooperation with Mr. Liu. Maybe you know something about our company. Our company is a long-established company in Hollywood with great influence."
Liu Hongmin smiled but said nothing. MGM's status in Hollywood is indeed very high. After all, a lean camel is bigger than a horse. However, MGM is now in trouble. If there are no more profitable projects, it may be acquired by Sony as the original historical process.
"Ahem!" MGM's CEO coughed lightly and said a little embarrassedly, "Of course, our company is currently facing some problems. Not long ago, I attended the celebration party of Face/Off and met the director of Face/Off, Wu Baige."
"Face/Off" was a huge success after its release in North America, earning $ million at the box office in the . The cost of "Face/Off" was less than $ million, and the profit from the box office and copyright alone is expected to be around $ million.
MGM was very jealous of this. If they had contacted Wu Baige first, then the $100 million profit would have belonged to MGM, right?
Therefore, the CEO of MGM specifically talked to Wu Baige, hoping to recruit him to MGM. However, Wu Baige was very happy with the cooperation with the small company and had no intention of leaving for the time being. So the CEO of MGM made a second choice and asked Wu Baige if there was no director like him in Hong Kong.
Wu Baige recommended Xu Ke to him, and then said: "Instead of looking for a director to cooperate with, you might as well cooperate directly with Tomorrow Film Company. They are good at making high-quality films. If they can make Hollywood movies, maybe they can help your company get out of trouble."
MGM is familiar with Tomorrow Films, but they will not easily cooperate with Hong Kong film companies. Hollywood is the center of world cinema, how can it easily lower its status? Finding a director is called talent discovery. However, Tomorrow Films is different. There is Liu Hongmin behind it. This internationally renowned writer has the copyright of novels coveted by many film companies, whether it is "Pirates of the Caribbean" or the World of Warcraft series, they are all coveted.
However, the current movie special effects are not yet developed, and it is impossible to shoot these works. Otherwise, the major Hollywood giants will break their heads for these copyrights.
MGM held several meetings to discuss the issue and finally decided to cooperate with Liu Hongmin.
"Mr. Liu, we want to reach an in-depth cooperation with you. We can cross-hold shares with Tomorrow Films and help Tomorrow Films' films be released in the United States. But we need the film copyrights of all your novels..."
Liu Hongmin laughed and said, "I don't know how cross-holding works?"
MGM CEO: "We at MGM will give 5% of our shares in exchange for 30% of Tomorrow Films' shares."
Liu Hongmin and Wang Yaowei looked at each other. Wang Yaowei nodded and said softly, "According to the market value, we are still getting a bargain."
MGM's market value is as high as several billion, and 5% is worth two or three hundred million dollars. Tomorrow's film company's market value is at most two or three hundred million dollars, and 30% of the shares is at most one hundred million dollars. MGM used the extra money to purchase the copyright of Liu Hongmin's novel.
Although Liu Hongmin's novels are very popular, the film copyrights are only worth a few million dollars at most. The only films that MGM is willing to adapt are Pirates of the Caribbean and the World of Warcraft series. Apart from that, even those science fiction novels have to be adapted into American settings with great effort, which not only requires a large investment, but also does not guarantee profitability.
Therefore, even if the copyrights of all of Liu Hongmin's novels were added together, they would not be sold for $100 million. If MGM had not been eyeing future profits, they would not have done such a loss-making business.
However, Liu Hongmin smiled and shook his head, "I wonder if MGM will still accept the investment?"
The CEO of MGM was stunned. “Mr. Liu, you want to invest in MGM?”
Liu Hongmin nodded. "Or I can buy some shares. I have a desire for control. If MGM wants me to be a shareholder, then the company must be run according to my ideas."
"I can't promise you that." MGM's CEO curled his lips. He didn't doubt Liu Hongmin's financial resources, but he doubted that Liu Hongmin couldn't fight against the shareholders. If Liu Hongmin and the shareholders fought and ruined this cooperation, it would be a major blow to MGM.
Liu Hongmin spread his hands, "If we can't become a major shareholder of MGM, then there is no need for us to cross-hold shares. As for the copyright of the novel, you can pay to buy it directly. As long as the price is right, I will sell it to you."
The CEO of MGM nodded and said, "I need to fly back to the United States to discuss this with the shareholders."
"no problem!"
Liu Hongmin stood up and said to Wang Yaowei, "I'll leave the rest to you. If there is any further progress, call me and tell me."
"Ok!"
Wang Yaowei nodded and took over the reception work.
Zou Shifang, who had been silent, stood up and followed Liu Hongmin to his office.
“Do you really want to buy MGM?”
(End of this chapter)
