Heads Up Hollywood

Ordinary hedge funds have an internal rate of return of only 12%-18%, but in the past five years, Columbia Pictures, the worst among the six major Hollywood companies, has a return rate of 14%-23% on investment in movies!

This is far more convenient, concise, stable, durable, and more effective than hedge funds' frequent operations in the stock market, futures market, and bond market!

Seeing that Michael Ovitz was moved, Tang En was in a good mood, and slowly said: "In the past ten years, the US box office has increased by 52%, and the overseas box office has more than tripled! And with the advancement of technology With the development, the income sources of Hollywood movies will become more and more extensive, and the considerable return on investment will definitely impress many hedge funds and even investment banks!"

Michael Ovitz nodded and said: "That's what I said, but if you want to get huge amounts of money from hedge funds, private equity funds or investment banks, you need a better reason."

Tang En smiled and said, "Of course, I'm ready."

He took out another document and handed it over, "In probability, there is a widely used probability solution method called the Monte Carlo method. In recent years, the Monte Carlo method has begun to be widely used by investment institutions." To adopt and apply it, to put it bluntly, is to use this method to integrate various investment portfolios and integrate multiple projects with unknown risks to achieve stable fluctuations in investment returns."

"This morning, I consulted some friends and also contacted analysts of Merrill Lynch, and made a set of statistics, you can take a look at it. According to the Monte Carlo simulation method, when the number of investment film projects reaches 20-25 When , the volatility of investment income is relatively small. That is to say, when investing in 20-25 films on a large scale, risks can be avoided.”

"Generally speaking, there is no essential difference between film investment and stock investment. They both use investment portfolios to avoid risks. Compared with stocks, even if the film market declines, there will be no sudden stock market crash, and the risk is smaller. .I named this investment method and called it 'Assortment Investment'."

Michael Ovitz took the document, looked at the complicated probability formulas and statistical charts on it, his head was getting bigger, and looked at Dun En in surprise, "You sorted this out all morning?"

"yes."

"this……"

Michael Ovitz took a breath.

He has been in Hollywood for decades, and he has contacts from the White House to the bottom. This is the first time he has met someone with such comprehensive professional knowledge as Tang En.

It was rumored in the media that Tang En was a "stock god" and an investment expert, but Michael Ovitz never believed it.

But looking at the detailed investment probability analysis on the document, Michael Ovitz suddenly felt respectful. At the same time, he also felt a little sad for his old opponent Michael Eisner.

Against a young man like Tang En, Michael Eisner... is too confident!

In other words, I underestimated him too much!

The more you get in touch with Tang En, the more you will feel that he is unfathomable.

It is impossible to predict when, he will come up with a shocking but enlightening idea.

Although Michael Ovitz is only a top broker who often deals with people and is not proficient in investment, he can see that the concept of "complex investment" proposed by Tang En is feasible!

It's just that he didn't understand, "Twain, how did you come up with it? It's amazing."

Tang En said with a smile: "It's just standing on the shoulders of giants."

Michael Ovitz laughed dumbfounded. He thought Dunn was joking again and called himself Newton.

But he didn't know that what Tang En said was completely true!

With the little ink in Tang En's stomach, he certainly didn't understand the esoteric Monte Carlo simulation, and it was impossible for him to come up with the idea of ​​investing in a movie platter.

He is really standing on the shoulders of giants!

After all, this happened in 2003.

The corporate culture of Viacom Group is both conservative and rough, which is related to the character of the big boss Lei Shidong, which can be seen from his refusal to cooperate with Tang En.

As a film company under the Viacom Group, Paramount has always had problems with its funding chain. Until 2003, Paramount's vice president of business operations, Isaac Palmer, came up with a great financing plan.

That's what Tang En is now proposing—the movie platter investment plan.

Paramount and Merrill Lynch have reached an agreement to establish a private equity fund that will invest in 25 Paramount films within the next two years, and the investment share will reach 20%.

As soon as the "investment platter" plan was put forward, it immediately caused a shock in Hollywood and Wall Street. In the following years, investment banks and private equity funds successively invested in movies in this way, and obtained considerable returns.

This is definitely the happiest collaboration ever between Hollywood and Wall Street, and the amount of money involved is huge, reaching billions of dollars.

The most famous ones are Relativity Media, Dune Entertainment and Legendary Pictures, which are equivalent to the intermediaries between Wall Street and Hollywood, providing channels for Wall Street funds to enter Hollywood.

The most important point is that if hedge funds, private equity funds and Hollywood film companies cooperate directly, they cannot get the film copyright, they can only share the share.

However, by setting up a management company like Legendary Films, you can obtain due benefits in negotiations with Hollywood film companies. If you invest 20%, you can get 20% of the copyright.

Later, Legendary Pictures was poorly managed and on the verge of bankruptcy, and was acquired by a real estate group with a huge sum of money, because they had enough intellectual property rights in their hands in the film assortment for more than ten years.

Although the profit is not much, but in the era when content is king, copyright can be sold at sky-high prices!

The global economic crisis in 2008 had too much impact, causing a series of hedge funds and private equity funds to withdraw funds and tighten money. Wall Street withdrew, and emerging capital markets such as Asia and the Middle East took over the platter of investment projects.

It is now 2000, and it is far from the time when platter investment appears.

Tang En is willing to take the initiative to bring this benefit to Hollywood in advance, so that the entire Hollywood will thank him for his contribution.

This is the blessing of influence!

...

Tang En's idea helped Michael Ovitz solve the problem that had been troubling him.

In the past, he used star power to attract investment in a single film, but now, he has understood the investment model of the new era, and the investment in large-scale and large-scale films is the core of attracting investors.

Of course, platter investment is not in line with his previous idea of ​​"one-stop shopping". This is a large business project, and his AMG brokerage company alone is not capable of running such a large business.

This requires more partners to join and form a new company.

AMG can be a shareholder of this new company, so it can naturally get more help.

Tang En glanced at Michael Ovitz, and found that he couldn't hide the excitement on his face, and said half-jokingly: "Michael, don't just think about your own interests, don't forget, I'm still being suppressed by Disney .”

Michael Ovitz was startled, and then he laughed loudly, "Twain, all the major film and television companies are struggling with financial problems. If the platter investment concept you created can help everyone tide over difficulties, Disney's With a little action, can you still get it on the table?"

Tang En frowned and said, "I need immediate results!"

Michael Ovitz knew what Tang En was thinking.

Now, with regard to Disney's banning order, Tang En said one day later, and the core Hollywood's impression of him would be lowered by one point, thinking that he was afraid of Disney.

Twain must respond as soon as possible, preferably with a sharp counterattack, to prove that he is not afraid of Michael Eisner. Twain Pictures also has the capital to compete with Disney!

Michael Ovitz pondered for a while, "Give me a week to operate. After a week, you can safely and boldly respond to Disney! Of course, it must be a small-scale response, and the spread should not be expanded."

"I understand that!" Tang En waved his hand and looked at him dubiously, "Is one week enough? The theory of platter investment is just a model. If you want to convince those investors, you need to make more detailed preparations."

Michael Ovitz said with a smile: "You don't have to worry about it. I will be responsible for dealing with people. But it is not a short-term thing to attract a large amount of investment, but you can give it to those large film companies first. Take a breath so they don't suppress you during this time."

Tang En nodded, too.

With Michael Ovitz's eloquence, he can easily draw a big cake for several film companies.

Now, except for Tang En Pictures, all film companies are dreaming of foreign investment. If Tang En can make a bridge out of it, they will definitely not take the risk of offending him to suppress Tang En Pictures.

This matter was handed over to Michael Ovitz, and Tang En was relieved.

"The business of investing in platters has great potential for development. Now everyone still doesn't understand this concept. If everyone figured it out, whether it is Wall Street or Hollywood, they will definitely build a bridge of communication quickly. Secrecy measures must be taken, and Once you make a shot, you must hit it with one hit!"

Tang En is not alarmist.

In 2003, Paramount first cooperated with Merrill Lynch to build a film investment platter model. Subsequently, companies such as Columbia, Warner, Universal, 20th Century Fox, and Disney all followed suit, looking for hedge funds to share risks.

Now, this idea is Tang En's patent, and he certainly doesn't want others to "learn".

Even if he learns secretly, he has to wait until he has obtained enough benefits through this idea.

Knowing Tang En's worries, Michael Ovitz waved his hand and said with a smile: "Don't worry, I know. There are too many tricks in the film company. Anyone who is an outsider dares to get involved? Even Wall Street is rich and powerful. Entering Hollywood without any guarantees. Having a reliable intermediary guarantee is the right way to invest.”