[Chapter 317: Disrupted Acquisition Plans]
At his Beverly Hills villa, Link lounged on the sofa, flipping through the newspaper when Lily walked in, balancing a fruit platter.
"Once you're home, you should really take a break and stop reading the news. You don't want to get upset," she said, placing the platter on the table.
"Why would I be upset? There's nothing but good news in here," Link replied, planting a kiss on her smooth cheek as she fed him a piece of pineapple.
"Too much of a good thing can be overwhelming," she said with a playful smile.
"Okay, fine!"
With a lovely woman by his side, Link momentarily set aside the newspaper to enjoy her company.
"Now that the movie is finished, when are you planning to start the next one?" she asked.
"I just finished filming and you're asking about the next scene. Do you want to wear me out?"
"What are you talking about!" Lily rolled her lovely eyes at him. "I'm just asking about your schedule. If the next movie won't start for a while, we should plan an early vacation to Hawaii."
"Vacation?"
Link looked at Lily, chuckling. "You used to resist the idea of vacationing, always telling me not to play around and to focus on work while I was young. Now you're the one suggesting a getaway. Lily, you've changed."
"Stop it!"
She playfully swatted his hand, her cheeks flushing. "I just think you've been worn out these last few months, and I thought it might be good for you to take some time off. It's nothing more than that."
"Really?"
Link smiled gently, suddenly noticing her attire. Not long ago, she had been dressed in a serious business suit, but now she had changed into a silk slip dress that showcased her curvaceous figure.
Once a dancer with a tall, slender frame, she had gained some curves after living with him for a few years.
In the right outfit, she looked very tempting.
Link recognized her intentions clearly.
After Monica's looks had subtly shifted, everyone's eyes on him felt more favorable. Even the usually aloof Lily had joined in.
Amused, Link didn't mind her ulterior motives.
"Lily, is Link back?"
"Link, we're home!"
Before he could act up, a lineup of women filtered into the living room: Monica Bellucci, Jennifer Connelly, Sofia Coppola, Milla Jovovich, Brooke Shields, Julianne Moore, Renee Zellweger, Jennifer Lopez, and more.
Link sighed inwardly, feeling the weight of the hectic schedule just as he disembarked from the plane.
...
The next morning dawned bright and clear. Link rose early for his workout and to prepare for work.
After wrapping up Batman Forever, he was busy managing company affairs while overseeing the post-production special effects produced by Industrial Light and Magic, ensuring everything met high standards.
While he juggled a hectic schedule, Guess Pictures' first-quarter releases continued to excel at the box office.
In its third week, Ace Ventura 2 had grossed $23.71 million in 2,705 North American theaters, totaling a box office of $92.58 million. It crossed the $100 million mark in its fourth week.
Following its ninth week, Rumble in the Bronx pulled in another $670,000, bringing its North American total to $37.52 million and international earnings around $23.03 million. Globally, it amassed $60.55 million, earning over eight times its budget.
Additionally, The Man from Earth was touted as the top seller in the VHS market, selling over 2 million copies in the U.S. and another 1.5 million internationally, racking up total sales of $100 million.
Because the producer of this movie was Guess Pictures, the video distribution was handled by Artisan Entertainment.
Artisan Entertainment was the third largest video distribution company in North America, after Columbia-TriStar and MCA Universal Home Entertainment. After the company was acquired by Guess Pictures at the end of 1993, it became a subsidiary.
In other words, Guess Pictures was both the producer and distributor of the videotape and could get more than 65% of the videotape's profits.
...
An article in Total Film magazine remarked on how critics prematurely wrote off Guess Pictures, poking fun that Link had forgotten the "box office secret" and mocked Sofia Coppola's less-than-stellar directorial debut.
However, the recent performance of these films proved them wrong.
The Man from Earth soared in the home video sector, Rumble in the Bronx exceeded its production budget by eightfold, and Ace Ventura: When Nature Calls topped North America's box office charts as the first film to cross the $100 million mark this year.
These accomplishments reaffirmed Guess Pictures' ongoing ascent, underscoring its position as one of Hollywood's most lucrative companies.
The other Hollywood studios would need more competitive blockbusters to challenge Guess Pictures' dominance.
In light of these successes, the second financing round for Guess Pictures turned highly sought after.
...
Wall Street entertainment capitalists rushed to request financing from Guess Pictures, waving checks to gain priority.
In a heated competition, Goldman Sachs and Deutsche Bank quickly stepped in, investing $135 million and $110 million for 6% and 5% stakes respectively, pushing the company's valuation to $2.2 billion -- exceeding Link's previous estimate by $200 million.
The entry of these two investment giants ignited enthusiasm in the capital market, encouraging other wary firms to jump in, vying for stakes and further escalating Guess Pictures' valuation.
In the chase for capital, Guess Pictures only grew more valuable.
...
"Those damn capitalists," Michael Ovitz slammed the Wall Street Journal down on his desk in frustration.
Goldman Sachs and Deutsche Bank were among the top ten investors on Wall Street, comparable to Vanguard Capital and J.P. Morgan, and they were also stakeholders in the Seven Studios.
As a stakeholder in Seven Studios, their investment in a rival was a clear message -- Guess Pictures had immense potential, promising more success than the Big Seven. Other investment institutions saw that the shareholders behind the seven major film companies also had such confidence in Guess Pictures, and their desire to invest became even stronger.
Seeing these stakeholders rally behind Guess Pictures only fueled Michael Ovitz's fury.
At the same time, he and the Big Seven studios executives were plotting countermeasures to reclaim their market share during the summer blockbuster season, and it irked them that their own investors were cheering on Link.
This ignorance not only demonstrated a lack of foresight but risked vulnerability. When Big Seven studios aimed to counter Guess Pictures in the future, they likely wouldn't commit fully.
...
Grinding his teeth, Michael Ovitz called the executives at Seven Studios.
He asked whether they were still invested in undermining Guess Pictures.
If they were willing to step back and relinquish their dominant position in the film industry, he wouldn't mind dropping his issues with Link and uniting forces to help Guess Pictures achieve true supremacy in Hollywood.
Presidents and board members of seven studios said that undermining Guess Pictures remained their long-term strategy and would not change in the next five years.
In recent years, Guess Pictures had performed too outstandingly, earning more in total box office revenue than several studios, significantly impacting the profitability of the major studios and reducing their investment in film production.
If Guess Pictures continued to dominate the North American box office, the seven studios could face bankruptcy within a decade.
This was a battle for survival, and there was no room for error.
...
Displeased by their outlook, Michael Ovitz inquired why Goldman Sachs and Deutsche Bank were investing in Guess Pictures if they knew the threat it posed to the seven Studios -- wasn't that like aiding the enemy?
Universal's president, Ron Meyer, corrected him, stating that this view was misleading.
Both J. P. Moragan and Vanguard Capital sought to control Guess Pictures, wishing to dominate the management following its positioning on Wall Street.
With Guess Pictures and seven studios effectively becoming tools for profit under capital control, there would be negligible differences between them. They wouldn't need to undermine the company actively.
As Michael Ovitz listened to this explanation, his mood gradually lifted.
They were using market and publicity strategies against Guess Pictures, while Wall Street leveraged financial means -- the goals were similar.
If both sides cooperated, they might find success in seizing control of Guess Pictures.
"Alright, this summer Guess Pictures is releasing four films, and we must unite to suppress their box office performance. If they dominate the summer season again, Guess Pictures will solidify its position in Hollywood, making future challenges exponentially harder."
"I understand. This summer, we have Tom Hanks' Apollo 13, Bruce Willis' Die Hard with a Vengeance, Kevin Costner's Waterworld, Disney's animated hit Pocahontas, and Clint Eastwood's The Bridges of Madison County -- all top-notch blockbuster productions. With these heavy hitters together, there's no way Guess Pictures' films will succeed this summer."
"Let's hope for the best," Michael Ovitz was confident in the seven studios lineup. However, in previous competitions against Guess Pictures, Link had used ingenious strategies that led to massive successes.
To prevent a repeat of past events, he instructed his insiders to keep close tabs on Link and Guess Pictures. Should anything resemble last year's Simpson Murder Case arise, he wanted immediate notification to prevent Link from seizing any opportunity.
...
"Sure thing, see you in the afternoon!"
In the office, Link hung up the phone.
Just then, Jackie Chan called to inform him that the film celebration party would kick off at 2 PM, mentioning that over ten actresses from Hong Kong wanted to meet him, hoping he would grant them the opportunity.
Link assured him he would attend.
"Link, you were so right! Our movie has really done well in the home video market. You're amazing," Sofia beamed.
"It wasn't a guess; the marketing department analyzed a bunch of data to reach this conclusion. But the sales did exceed our expectations. Initially, we projected only over a million copies; now we've sold two million just in North America."
Link replied as he browsed through magazines.
In fact, The Man from Earth's current sales were far beyond what he had anticipated.
Originally, the film's VHS distribution had only broken $350 million globally over ten years. Now, in just three months, it was set to hit $100 million, with a chance to surpass $200 million within the year and a minimum of $400 million in a decade.
The sales figures had surpassed the original mainly because of the popularity of the novel Interstellar, which had a huge global following, coupled with a stellar cast and finely crafted production. Guess Pictures also invested heavily in home video promotion.
A combination of factors propelled the VHS sales to remarkable highs.
"Sofia, how does it feel to have the film do so well?" Lily handed her a glass of juice.
"It feels fantastic! When the film struggled at the box office earlier this year, many media outlets mocked me, claiming I had ruined a classic sci-fi novel. Now that the film is thriving, those critics are eating their words."
Sofia leaned back against the sofa, giddily swaying her feet.
"You're right! Next, the company will arrange for the media to revisit old articles that criticized you and Link, to show everyone how they scoffed at you then. Since the film is thriving now, let's see what they have to say."
"If you have time, you should do several interviews and talk about how it felt during the film's struggles and its unexpected success in the home video market. Let those who criticized you start to turn green with envy," Lily suggested with a smirk.
"That's a brilliant idea! I'm all for it," Sofia cheered, waving her fair arm in excitement.
Link shook his head. "Sofia, The Man from Earth has been released. It's time to think about your next project. You need to keep making films to hone your skills as a director."
"I know! I've been reading novels and scripts lately; once I find the right one, I'll get your thoughts on it," Sofia leaned against his shoulder as she said.
"Alright."
Link prepared to dive back into his work, but it seemed Sofia was determined to keep distracting him.
Lily turned a blind eye to this.
...
Before they could get too carried away, Mark Amin, the Vice President responsible for the company's development plans, walked into the office to present his report.
Earlier in the year, in response to seven studios' pressure, Link had tasked Mark with several acquisition missions -- securing struggling yet capable film companies and two animation studios, Blue Sky Animation and Pixar Animation.
Immediately, Mark and his team had started looking for suitable targets, including the nearly bankrupt Castle Rock Entertainment, the mismanaged Touchstone Pictures, and United Artists, which MGM intended to sell again.
However, Big Seven studios were concerned that Guess Pictures would become even stronger after acquiring other companies, and they proactively targeted them first.
In the end, Warner Brothers acquired Castle Rock, Disney took over Touchstone, and MGM was persuaded to postpone the sale of United Artists.
In the animation studio acquisition, 21st Century Fox preemptively snatched Blue Sky Animation, years ahead of schedule, while Jobs outright declined to sell Pixar.
Big Seven studios' maneuvers hindered Guess Pictures' acquisition plans.
However, Link was unwilling to concede. He instructed Mark Amin to continue engaging with Jobs to raise offers for Pixar Animation, originally starting with $300 million, incrementally climbing to $500 million plus a 5% stake in Guess Pictures.
As the bid increased, the pressure from Jobs eased, and word came through Mark that he was interested in meeting Link face-to-face hearing Link returned to Los Angeles.
Link accepted the invitation, scheduling it for Saturday.
*****
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