When Dunn returned to the United States in late July, the buzz around "Titanic" was still electrifying. The film had been in theaters for over two months, and his bold prediction was coming true: the first movie in history to surpass $1 billion in box office earnings had been born.
With a North American gross of $ 490 million, an overseas gross of $ 660 million, and a global total of $1.5 billion, "Titanic" had shattered records, leaving behind the likes of "Star Wars" and "Jurassic Park." The film had such a profound impact that even countries hostile to the U.S. screened it. Remarkably, even across the strait, where censorship was usually strict, every scene of "Titanic" was shown uncut—a testament to the film's power.
Now that the film had reached such heights, Dunn decided it was time to claim his share of the profits. His contract entitled him to 10% of the global box office, which was estimated to be between $1.8 billion and $1.9 billion. However, high earnings meant heavy taxes, particularly in the United States, where the Democratic Party's policies imposed steep personal income taxes. Dunn would be subject to the highest federal income tax rate of 39%, a 9.3% state income tax in California, along with various other taxes, totaling approximately 49% of his earnings.
Despite the numerous tax avoidance strategies available, such as investing in high-tech sectors, donating to charitable foundations, or setting up offshore companies, Dunn felt these options were impractical. He preferred to put his money to work in the stock market, where opportunities like Yahoo's explosive growth were on his radar. He was keenly aware that 1997 was an ideal time to invest in Yahoo.
First, though, he needed to secure his payout from Fox Films. Displeased with his agent William Mihawk's inability to expedite the payment, Dunn decided to take matters into his own hands. He went directly to Fox's financial department, where he learned that company president Tom Rothman had ordered the funds to be held back to pay off debts and fund new projects. Dunn , however, wasn't interested in excuses. He headed upstairs to Bill Mechanic's office, determined to get his money.
Bill Mechanic greeted him warmly, even pouring him a cup of coffee, and praised Dunn for his work on "Titanic." However, Dunn wasn't there for compliments. He was there to collect his money. When Mechanic hinted at financial prudence, Dunn pressed on, explaining that he needed the funds to start his own film company. Mechanic was taken aback by the size of Dunn 's request—a staggering $1 billion—but Dunn remained firm.
Mechanic hesitated, but ultimately agreed to release the funds within five days. Dunn was relieved; his intense efforts on "Titanic" were finally paying off. Three days later, the money hit his account. Instead of rushing to open a stock portfolio in New York, Dunn took a moment to reflect. He had a nagging feeling that he was overlooking something important.
Just then, his agent William Mihawk called, offering him a new project. Dunn listened carefully, intrigued by the prospect of another big opportunity.
Dunn raised his eyebrows; he had already made it clear that he wasn't interested in investing 18 million in an independent film!
"That's right, it's a big project—the 'Lord of the Rings' trilogy by New Line Cinema!" William's tone was bold, yet his voice remained calm.
Dunn was momentarily stunned. *The Lord of the Rings*? How is that possible?
"Isn't that Peter Jackson's project?"
"Yes, Peter Jackson is the director of the film."
"Hmm?" Dunn narrowed his eyes, feeling a bit displeased. "Producer? What's the pay?"
"No, no, no, Dunn , you misunderstood. Peter Jackson didn't invite you to be the producer—he doesn't have that authority. The position he's offering is assistant director."
"Assistant director?"
Dunn thought he had misheard and widened his eyes in disbelief.
Peter Jackson's ego is out of control, isn't it?
You're asking me, the director of the world's highest-grossing film *Titanic*, to be your assistant and run errands? Are you insulting me or just messing with me?
Anger instantly flashed across Dunn 's face.
This is too much!
Wait a minute!
Something's not right...