[Chapter 309: Annual Box Office Rankings and the Latest Forbes Rich List]
After leaving Jennifer's apartment, Link received a call from Vanguard Capital and J.P. Morgans.
Greg Davis and Paul Zummo mentioned an article in the newspaper that criticized Link for spending over ten million on public relations for the Oscars. They expressed their dissatisfaction, saying he was wasting shareholder money and that such behavior needed to stop.
Link defended himself, stating that PR for the Oscars was essentially promoting the films, not for personal gain, and they had no right to interfere. Plus, as the largest shareholder of Guess Pictures, he was using his own money, so the shareholders had no say in the matter.
Frustrated, the two slammed their hands on the table, insisting that some of that money belonged to them. Link told them if they believed in Guess Pictures' future, they shouldn't meddle in company affairs. If they didn't believe, they were welcome to sell their shares.
Guess Pictures was willing to buy back their shares for a valuation of six hundred million. The two companies had invested in Guess Pictures for less than a year and had already made over ten million, which was a profitable investment. Yet, they refused to sell their shares.
Greg Davis insisted that if they sold, it should be at his set valuation of 1.6 billion, not six hundred million. Link agreed, saying they could sell at 1.6 billion. Ten percent of that was 150 million, which Guess Pictures could afford, and he was willing to spend that to remove uncooperative partners and find more suitable investors.
After a moment of silence, Greg Davis stated that Vanguard Capital would not sell their shares. Paul Zummo reiterated his refusal as well. The call ended on a sour note.
...
Days later, spurred by the Oscars, the box office for Se7en grew, slowly increasing from 350 million to 360 million. Other films like Speed and Good Will Hunting also saw significant boosts. The media began reporting that Guess Pictures' investment in the Oscars was a shrewd move and a bold investment.
Greg Davis and Paul Zummo called Link again, congratulating him on the box office increases of his films while reminding him that the deadline for the second round of financing for Guess Pictures was approaching, and they asked what his plans were. Link replied that he had no plans. They warned him that without a plan, the second round would fail.
Link remained confident, stating that it wouldn't fail, and even if it did, it wouldn't affect the company -- the company was well-funded and did not require financing at that time. On the other end of the line, Greg Davis let out an exasperated sigh, insisting that it was irrational to think that way. He argued that obtaining funds through financing was the most direct way to expand the company.
"Guess Pictures is at a crucial development stage now; completing the second round of financing would strengthen us, and Vanguard Capital is willing to help."
"Oh, what do you suggest?"
"A valuation of one billion. This is Vanguard Capital's latest estimate for Guess Pictures. If you agree, we will help you finish the second round of financing."
"Greg, I've said it many times; 1.6 billion is my bottom line, and I won't back down." Link stood firm.
The sound of Greg slapping the table echoed through the phone.
"Link, you need to be more flexible and recognize the current situation. The big seven production companies and the big seven media groups are collaborating to suppress Guess Pictures and curtail its market. The future will be even worse if you don't act. Furthermore, the financial results of the two films Guess Pictures released earlier this year were not impressive; they performed worse compared to last year. I believe one billion is a fair price." Greg said through gritted teeth.
Link laughed. "The big seven teamed up this year to undermine me, launching a smear campaign to try and take me down, but they failed, and they will continue to fail. The Man from Earth's box office returns exceeded one hundred times, and Rumble in the Bronx made four times its return in North America alone. This kind of movies are something that the Big Seven studios should celebrate with champagne, but you tell me that these two movies are not outstanding? I know that Vanguard Capital is a shareholder of the big seven, but how many of their films from the beginning of the year can compete with those two?"
Greg was at a loss for words. Both of those films had low production costs; even spending heavily on marketing meant Guess Pictures could still earn multiples of its investment. Meanwhile, the big seven had a high-cost production model, and so far this year, none of their films matched the box office returns of Rumble in the Bronx, let alone The Man from Earth.
"Alright, Link, you make valid points, but I hope you reconsider."
"No need to reconsider. 1.6 billion is a fair price. If you miss out on buying in while the stock price is low, I can guarantee that when the company grows, you won't have the chance to join in then." Link hung up the phone.
...
A couple of days later, Greg Davis called again, this time with an excited tone, informing Link that after much persuasion, Vanguard Capital's investment department was willing to participate in the second round of financing at a valuation of 1.2 billion. He asked if Link accepted?
Link replied that he did not, stating that Guess Pictures had now increased its valuation to 1.7 billion as a baseline.
"Why?! Why has it gone up by a hundred million?" Greg shouted in frustration.
He had been meticulously working to probe Link's bottom line and thought he was close to a breakthrough, only to find that Link had stepped back significantly. This turned all his previous efforts into a bitter joke.
"You can check today's newspaper; you should find the answer there. There's also a reason: last year, I mentioned that during the second round of financing, I would prioritize companies that significantly assist in the company's growth. Unfortunately, Vanguard Capital wasn't among them."
"Last year, the big seven worked together to suppress Guess Pictures, and we contributed as well."
"Yes, but you didn't maintain that support," Link replied.
...
Greg Davis clenched his teeth and hung up. He called his assistant to have all the newspapers and magazines related to Link and Guess Pictures delivered to him.
At the top of the pile was The Hollywood Reporter. Inside was the list of the top twenty box office films of 1994 and the revenue from all Hollywood studios last year.
Last year, the top-ranked movie in North America was Se7en, which grossed $363 million in North America and $836 million worldwide.
The second place is Forrest Gump, with a North American box office of 320 million and a global box office of 678 million.
The third place is The Lion King, with a North American box office of 306 million US dollars and a global box office of 852 million US dollars.
Fourth place: True Lies, with a North American box office of 146 million and a global box office of 368 million.
Fifth place: Good Will Hunting, with 138 million in North America and 225 million worldwide.
Sixth place: The Flintstones, $130 million, $340 million worldwide.
Seventh place: Speed, $125 million, $360 million worldwide.
Eighth place: Dumb and Dumber, 122 million, 247 million worldwide.
Ninth place: Clear and Present Danger, with 122 million in North America and 215 million worldwide.
Tenth place: The Mask, with 119 million in North America and 357 million worldwide.
Eleventh place: Pulp Fiction, with 109 million in North America and 213 million worldwide.
Twelfth place: Interview with the Vampire, with $102 million in North America and $216 million worldwide.
According to The Hollywood Reporter, five and a half films in the top twelve belonged to Guess Pictures, occupying nearly half of that list, including movies ranked first, fifth, seventh, eighth, and tenth -- with half of Pulp Fiction, which ranked 11th.
Among the top twelve, movies from Guess Pictures occupy almost half, with the big seven combined not even coming close to Guess Pictures alone.
The report even expressed shock by laying it out as a mathematical equation: Warner Bros + Universal + Disney + Paramount < Guess Pictures.
...
Another section of the paper outlined the profits of all major Hollywood film companies for the year, declaring Guess Pictures as the new powerhouse of Hollywood.
Guess Pictures released nine films last year, earning a total of $924 million in North America, with global box office of 2.07 billion US dollars. Several films were still being screened in overseas territories and the total box office was expected to be even higher.
In second place was Paramount Pictures, which released 18 films last year, with a total box office of US$787 million in North America and US$1.76 billion worldwide.
In third place was Disney, which released 21 films last year, with a North American box office of 682 million US dollars and a global box office of 1.83 billion US dollars.
Ranked fourth to eighth were 20th Century Fox, Warner Bros., Columbia Pictures, Universal Pictures, and MGM Pictures.
Last year, a total of 261 films were released in theaters in North America, with a total box office of $5.16 billion, an increase of 6.7% over 1994.
Guess Pictures ranked first with a market share of 18.3%, surpassing the combined earnings of Colombia, Universal, and MGM.
The Hollywood Reporter said that Guess Pictures was the new overlord of the Hollywood film industry. The seven major studios are seven giants. The current pattern of the Hollywood presented a pattern of 1 overlord + 7 giants, which elevated Guess Pictures to an extremely high position.
...
Seeing this, Greg Davis couldn't help but click his tongue in disbelief. Despite his annoyance with Link's arrogant demeanor about money, he had to admit that under Link's leadership, Guess Pictures had created an impressive achievement. It was a golden treasure with immense potential for profit.
This likely fueled Link's courage to raise the company's valuation to 1.7 billion even amidst the pressure from the big seven.
...
Greg Davis stroked his chin while flipping through another magazine. The latest issue of Forbes had just come out, showing a significant change in Link's net worth.
On the current Forbes rich List, Link was ranked 102nd with a total wealth of 3.2 billion dollars -- up by 1.75 billion from the previous year, and he had surged over three hundred spots on the rankings. Forbes reported that his assets fell into three main parts: Glimmer Capital, Guess Pictures, and personal income.
Glimmer Capital had become a large investment firm that quickly rose in Wall Street rankings in the last two years, managing shares in major companies like 4.38% of Microsoft, 2.42% of Cisco, 4.06% of Disney, 0.32% of Apple, and 1.21% of Berkshire Hathaway. It also held stakes in several private companies, including 15% of Netscape, 95% of Marvel Entertainment, 20% of Guess Pictures, 15% of UTA agency, 18% of LTD clothing company (Victoria's Secret parent company), etc.
Forbes valued Glimmer Capital at 2.9 billion, with Link owning a staggering 96.3% of it. Microsoft share had reached about 1.7 billion dollars, and last year, news broke that Microsoft would be launching a new operating system, Windows 95, which saw its market value surge. According to the current trend, Microsoft's market value would continue to grow from the current 36 billion to 50 billion or even more. Link's stake in Microsoft was expected to rise significantly.
Cisco, benefitting from the booming Internet industry, had soared in value too to US$18 billion at the end of last year, making Link's 2.42% share worth about 430 million dollars.
Last year, affected by internal changes in the company, Disney's market value fell from a peak of more than 18 billion to 12 billion US dollars, and was still falling. Despite this, the 4.06% of Disney shares held by Glimmer Capital was 482 million US dollars.
Shares of other companies were mostly worth around $100 million.
Forbes estimated Guess Pictures at 800 million, with Link's 53% ownership amounting to about 420 million. He also earned around 180 million dollars last year from various film revenues and rights.
In total, his assets roughly tallied to 3.2 billion taken altogether.
However, Forbes noted in the article's conclusion that Link had purchased several properties worldwide over the past few years, including Beverly Hills mansions, Hawaiian resorts, and luxurious apartments in New York and France, plus yachts, private jets, and substantial bank deposits.
His real net worth far exceeded 3.2 billion dollars, placing him at 43rd on the American 400 Richest list.
In Forbes' list of celebrity income, Link topped the list with his 180 million, overshadowing all athletes, actors, and musicians.
...
"3.2 billion dollars!" Greg Davis gritted his teeth, feeling a mixture of envy and shock.
Link was among the top 50 wealthiest individuals in the country and a titan within the industry. Davis had often overlooked Link's achievements, treating him simply as the boss of Guess Pictures, and even felt comfortable enough to argue with him on the phone.
Now, he realized he needed to change his approach toward Link. Guess Pictures was not just the highest box office earner; it generated profits that surpassed those of the big seven studios combined. This would further fuel investors' enthusiasm for investing in Guess Pictures, and Wall Street would likely give Guess Pictures an even higher valuation than 1 billion.
As Link asked for 1.7 billion, Greg Davis contemplated convening a special board meeting to discuss whether they should pursue a premium acquisition of Guess Pictures' shares.
...
After the annual box office rankings and the Forbes list came out, Link received numerous congratulatory messages from friends, colleagues, celebrities, politicians, and Wall Street investors.
Particularly among politicians, after Link debuted on the Forbes list, many from different parties reached out, seeking his financial backing. Initially, Link had no desire to engage in politics, donating only to a few Department of Justice officials, but now with more recognition and financial strength, he even received contact from the White House.
On the advice of his consulting team at Glimmer Capital, he made modest investments in a few politicians, including Schwarzenegger and Texas Governor Bush, realizing that personal ventures would inevitably intersect with politics once they achieved a certain level of asset.
Seeking political support would not only enhance his business interests but also create a favorable policy environment for his company. Moreover, it could solidify his standing within the industry, expand his network, and provide protection.
In comparison to other sectors, the entertainment industry has more intimate ties with politics. Historical Hollywood power players have often supported presidential candidates, including the likes of MGM founder Louis Meyer and Universal chairman Lou Wasserman.
Link had been recognized as one of the most powerful figures in Hollywood for a year by various media, and holding that title made his involvement in politics nearly unavoidable. However, he understood that politics could also be a double-edged sword.
The early Hollywood king, Louis Meyer, was once the Oscar initiator, who had supported Herbert Hoover, only to fall from grace with the rise of Roosevelt. Similarly, the ascendancy and downfall of figures like Michael Ovitz had much to do with political factors.
Aware of these cautionary tales, Link resolved to engage in politics only at arms' length, focusing primarily on making films.
...
"Hey, big shot, congratulations on making Forbes top 50! When are you throwing a party to celebrate? Let us help you spend some money," Quentin called.
"Not for now; let me finish this film and then I'll treat everyone to drinks."
"That sounds more like it! I just can't understand how someone like you makes so much money. Three billion dollars? How can you even spend it all?"
"It's mostly in stocks. There isn't much converted to cash. By the way, didn't you say you wanted to invest in stocks last year? How much have you made in the current market?"
"I never did; I was going to, but my funds were limited, and I didn't want to stifle my spending by investing."
Link and Quentin talked briefly about cinema before they hung up.
...
He immediately received a call from Jackie Chan, congratulating him on Guess Pictures topping industry charts. They discussed the box office performance of Rumble in the Bronx, which had grossed $35.5 million domestically and around $16 million overseas, surpassing $50 million total, achieving an impressive revenue ratio.
Jackie mentioned he was planning to hold a celebration at his villa and asked if Link was available to join, saying he would adjust to Link's schedule.
Link replied that Batman would probably wrap up in about three weeks. Jackie offered to wait for him and brought up Guess Pictures' second round of financing.
Investors from Hong Kong had reached out, interested in joining the financing for Guess Pictures, and he asked if there was a chance for that.
Link thought it over and said he could discuss it. In reality, while securing funding could indeed bring in more money, the primary goal was to gain the backing of influential investors.
Hong Kong capital didn't have strong roots in Hollywood, so bringing them into the board of directors wouldn't have much impact.
...
Just as he hung up, Link received a call from Sophie Marceau, who was in Paris. She said she missed him and asked if he would attend the Cannes Film Festival in May.
Link replied that he was busy filming and wasn't sure if he could make it. But if he couldn't travel, Sophie could come to Los Angeles since her film Braveheart, starring Mel Gibson, would be released in May. She would be around for promotions then.
Sophie softly agreed.
*****
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