[Chapter 316: Box Office Success, Video Sales Soar, Shares in High Demand]
After a week of screenings and promotion, the weekend box office results for Ace Ventura: When Nature Calls were in. Despite facing pressure from the seven major studios during its release, the film performed surprisingly well.
In its opening week, it grossed $37.8 million from 2,652 theaters. It surpassed Universal Pictures' Major Payne and Sony Pictures' Dolores Claiborne to claim the top spot at the weekend box office. With a production budget of $32 million, the film recouped its costs in the first week, proving it was a hit and hinting at the potential to continue the success of the first film.
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"Yes! Yes! I won!" Robert exclaimed as he celebrated the box office numbers. He excitedly called Quentin to announce that he owed everyone drinks. Quentin, however, scolded him for being unprofessional, saying that a director should focus on filmmaking rather than drinking. He declared he was going to quit drinking starting today.
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Following the impressive box office performance of Ace Ventura: When Nature Calls, numerous media outlets jumped on the bandwagon, promoting the film's success. The Los Angeles Times noted that Guess Pictures was temporarily leading the competition against the seven major studios.
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"Link really hit the jackpot with a film like Ace Ventura: When Nature Calls," exclaimed Greg Davis as he read the newspaper at the Warner Brothers Pictures office. Richard Fox nodded in agreement.
Ace Ventura 1 and 2's ridiculous comedy scripts were plentiful at the seven major studios, but the characters were often exaggerated and the storylines too thin, lacking any artistic merit. They were essentially ridiculous comedies with few redeeming qualities, making them a risky investment.
Such scripts would not pass the initial review at the seven major studios. Though, it was these very films that had allowed Guess Pictures to rake in profits through the success of Ace Ventura: Pet Detective, Dumb and Dumber, and The Mask. All three had grossed over $100 million, and the fourth was looking promising as well.
The combination of those four films brought in over a billion dollars, a windfall akin to discovering a gold mine in a deserted area. And Link was the one who struck that gold.
In a recent article, The Hollywood Reporter stated that without Link there wouldn't be any film successes. The reasons were twofold: First, Link's understanding of commercial cinema differed from that of the seven major studios; he often focused solely on developing specific qualities within a film: horror films prioritized scares, and comedies emphasized humor -- other aspects took a backseat. This was part of what made films like Paranormal Activity and Ace Ventura: When Nature Calls so successful.
Secondly, the popularity of the Ace Ventura franchise was due in part to Jim Carrey's performances. Link's willingness to cast Carrey and invest in him spoke to his keen eye for talent. Only Link's boldness, independence, and vision had led to the major box office success that others couldn't replicate.
Richard Fox envied Link's fortune but understood that without him, even if given these scripts, they wouldn't invest in those projects due to the limitations of major studios.
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"That guy has all the luck! At this rate, Ace Ventura: When Nature Calls's North American box office will be at least $100 million. Guess Pictures could dominate the North American box office market this year," Harvey Weinstein said, frowning in his office at Miramax, as he looked over the spread of The Los Angeles Times.
The paper forecasted that Ace Ventura: When Nature Calls' North American box office would exceed $100 million. If the film sold well, it would not only confirm Link's keen market judgment but also bolster Guess Pictures' influence and market value in Hollywood, reviving interest in their second round of financing that had previously gone unnoticed.
This could render futile all the efforts and resources that Michael Ovitz and the seven major media groups had poured into suppressing Link and Guess Pictures.
"I just don't understand what Michael Ovitz and his crew have been doing. They've been trying to push down Link and Guess Pictures for so long without effect. If I had those resources, I'd guarantee that I could bring Link to his knees," Bob Weinstein scoffed.
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Taking a puff on his cigar, Harvey Weinstein pondered for a moment before picking up the phone and calling Michael Ovitz, asking how they would respond to the Box Office success of Ace Ventura: When Nature Calls.
Ovitz reassured him that Guess Pictures' success would only further irritate the seven major studios, and they would ramp up their efforts to suppress Ace Ventura: When Nature Calls and Carrey, ensuring Guess Pictures' films wouldn't succeed.
Harvey nodded, saying he looked forward to their next moves.
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As Ace Ventura: When Nature Calls continued to sell well, the seven major studios sensed a threat and, in the second week, resorted to utilizing their parent company's resources to launch a more aggressive media campaign against Ace Ventura: When Nature Calls and Jim Carrey's reputation.
Critics attacked the film for a scene where Carrey emerged from an elephant model's backside, calling it a vulgar and base comedy that had no standards, urging everyone to skip the theaters.
They also baselessly accused Carrey of being a ham with no acting skills, claiming he didn't deserve his $20 million paycheck.
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In response to this negative press, Link directed the public relations department at Guess Pictures to engage in a full-blown media war with outlets under the seven major media groups. They were to hire more staff and shell out whatever funds were necessary to ensure an effective advertising campaign.
The publicity department invested millions in acquiring media resources, countering the negative reports from the seven major groups, and even filed lawsuits against various media outlets for spreading false news and leaking film plots.
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The two parties exchanged barbs, engaging in a fierce public battle.
Despite Guess Pictures' significant PR efforts, the seven major studios had greater resources and a wider outreach.
In the second week, Ace Ventura: When Nature Calls' box office took a slight hit, earning $31.07 million. The film grossed $68.87 million over two weeks, retaining the top spot at the weekend box office.
Once the numbers were out, those who had hoped for Guess Pictures' downfall could hardly mask their disappointment. With box office totals nearing $70 million in just two weeks, it was expected that the movie would cross the $100 million mark in North America within another week, making it the first film in 1995 to achieve that milestone.
The seven major studios, having spent significant resources attempting to suppress Ace Ventura: When Nature Calls, were faced with the reality that the film had become a major success. They had to admit that Guess Pictures was formidable, resilient, and willing to take risks while also being incredibly fortunate.
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The rise of Guess Pictures also received positive notice from Wall Street following the success of Ace Ventura: When Nature Calls. Many investment firms began reconsidering participation in Guess Pictures' second round of financing.
While on set making the film, Link received several calls from acquaintances inquiring about the second round of financing, including Greg Davis and Paul Zummo. Both expressed interest in continuing to fund Guess Pictures at a $1.5 billion valuation.
Link declined, stating that it was too late to secure financing and that there were no slots available, even at $1.7 billion.
Greg and Paul were shocked and asked who had taken the investment shares.
Link merely instructed them to check the newspapers.
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By the third week of Ace Ventura: When Nature Calls's release, The Hollywood Reporter dropped a bombshell: a film many people thought would bomb, The Man from Earth, had been appearing in video rental stores across North America after its theatrical run.
Over the course of three months, it sold 1.16 million copies in North America, including VHS tapes and VCDs, amassing a total revenue of $37.12 million.
Overseas, the film also performed well, selling 864,000 copies in just over one month, with total sales amounting to $24.08 million.
As of now, the total revenue from the film's video sales rose to $61.2 million. According to Total Film magazine, the video sales in North America were projected to reach at least $200 million, with overseas sales not falling short of that mark either.
Given the revenue-sharing model for video sales, the production company stood to gain 35% of the sales. Guess Pictures could make over $100 million from this film alone.
The production cost was only $15,000, yielding outrageous profits in the thousands, far surpassing many high-grossing stocks, which was incredibly enticing.
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"We all underestimated Link. Since '92, movies that he put stock in have rarely failed. The Man from Earth was his script, so it was never going to fail. We should have anticipated that," Greg Davis declared in a boardroom meeting at Vanguard Capital, looking at the more than a dozen senior partners seated around the table.
Behind these partners stood several billionaires and foundations. Their job was to manage clients' funds, using that money to generate returns and receive their cut.
If they helped clients make money through stock or business investments, clients would trust them with more funds. Conversely, if investments failed, client support would dwindle, leading to declining revenues.
Thus, they placed immense value on projects capable of generating sustainable profit.
Previously, they had also backed Link and Guess Pictures, but he was too frugal in sharing profits. The returns were too minimal, which left many unsatisfied and led them to support the seven studios in their efforts to press down on Guess Pictures.
With control, they could dictate how much Guess Pictures shared annually, how much was invested, and when they would go public.
But Link proved tougher than they anticipated. Faced with concerted pressure from the seven major studios and financiers, Link stood his ground against their onslaught, gradually flipping the narrative by delivering one hit film after another.
Now, with consecutive successful films, Guess Pictures was beginning to gain a competitive edge. They felt compelled to choose sides between the seven studios and Guess Pictures -- who would they support?
"I propose we get involved in the second round of financing for Guess Pictures as quickly as possible. If Link wants $1.7 billion, let's give it to him. If we wait too long, I'm worried we'll miss this great opportunity," Greg Davis urged.
The partners were silent for a moment, then began voicing their opinions. Some agreed, while others opposed.
Supporters noted that Guess Pictures was rapidly developing, had significant potential, and was likely to attain a higher valuation in the future, thus making it a smart investment.
Opponents argued they could continue investing, but they needed to secure majority control over Guess Pictures to avoid being extorted by Link.
They cited the incident in which he announced no dividends were to be distributed when he didn't receive support, instead using shareholders' funds for personal PR, promoting for the Oscars, and even paying high salaries to a few of his girlfriends.
This approach was deemed unacceptable. From a risk avoidance perspective, control over Guess Pictures needed to lie on Wall Street, not in Link's hands.
The opposition's stance garnered considerable support. While Link had proven to be a lucrative money-maker and a competent manager, he was ultimately unpredictable.
Should they continue investing in Guess Pictures, if the seven major studios united against him again and the company didn't offer help, Link would revert to his previous tactics.
At that point, they would find themselves in a bind.
"Link once said he would relinquish control at the third round of financing," Greg Davis pointed out.
"Then we can wait until the third round to participate, but we can't let Link hold us hostage," partner Anthony remarked.
"Yet the timeline for the third round isn't established. We could miss out on the rapid growth of Guess Pictures, and in the interim, our shares during the second round could be diluted, significantly decreasing our voice in the boardroom," Greg Davis raised his hands in frustration.
His comments reignited strong debates among the partners, with supporters and opponents remaining adamant.
Greg Davis called for a democratic vote.
Ultimately, the proponents for continued investment in Guess Pictures won 9 to 6.
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Following the news of The Man from Earth's success, not just Vanguard Capital, but also J.P. Morgans, Goldman Sachs, and other investment firms began actively courting Guess Pictures for the second round of financing.
Amid various reports, it was revealed that due to the high demand for shares in Guess Pictures, some investment firms were willing to spend $300 million to obtain a 10% stake, pushing its valuation to $3 billion, even surpassing Columbia Pictures and Universal Pictures.
With this information circulating, Hollywood braced for another wave of envy and jealousy toward Guess Pictures.
Guess Pictures' stock continued to rise in value, prompting Wall Street investment firms to re-evaluate its valuation, projecting it between $1 billion and $1.5 billion.
Given that Guess Pictures could generate consistent profits, investment consultants believed that despite the inherent risks, the returns were considerable. Therefore, they raised the high-end valuation to $1.5 billion.
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Nonetheless, Link was dissatisfied with this valuation.
During the second round of financing, he quoted a price of $1.8 billion to $2 billion for a 30% stake, expecting to introduce ten new shareholders, each acquiring about a 3% share. Shareholders with larger contributions could secure additional shares and board seats, but newly joined shareholders wouldn't receive dividends for two years.
His strategy was evidently price gouging.
However, Guess Pictures' shares were highly coveted.
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Last year, Vanguard Capital and J.P. Morgans had contributed around $50-60 million to Guess Pictures; merely a year later, their investments had quadrupled.
In the entertainment sector, no company could match that profitability.
Numerous Wall Street investors shouted their grievances about Link's greed while scrambling to invest in Guess Pictures, checks in hand.
However, Link was too engrossed in making films to address financing matters directly. He entrusted this to his Chief Investment Officer, Jack Brennan, and his team, who handled the specifics while Link maintained oversight on the broader direction.
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"Cut!"
On the set of Batman Forever, Link reviewed the footage and noted it was satisfactory. With everyone watching, he waved his hand, "We're good on this take!"
"Yes!" cheered the cast and crew, jumping up with excitement.
Ryan Phillippe and others started spraying champagne everywhere, filling the set with the sweet scent of celebration.
After over seventy days of intense filming, in early April, Batman Forever wrapped production. Link and the crew returned to Los Angeles to work on the film's special effects.
*****
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