Chapter 71. The Concept of a Prototype Production Chain

Eric had never been particularly interested in the Olsen twins or their company, Dualstar Entertainment. The reason he suddenly offered to buy their shares stemmed from a recent meeting with Steven Spielberg.

This happened at the premiere of Catch Me If You Can. Peter Jackson was invited since he was working on the special effects for Transformers at Weta Digital, and he brought Eric along with him. After the premiere, they had a long conversation.

Initially, they discussed Transformers. Spielberg regretfully mentioned that DreamWorks had tried to negotiate with Hasbro, but the offered amount didn't satisfy the rights holders. Now the rights to Transformers belonged to MGM, and Spielberg hoped for DreamWorks' involvement.

But Eric politely declined, explaining that the project was already underway. If DreamWorks had shown interest earlier, MGM would have gladly welcomed their participation.

However, Transformers was only a minor part of their conversation. The main topic was the development of MGM and DreamWorks.

In Hollywood, everyone knew that Spielberg had founded DreamWorks with Jeffrey Katzenberg and David Geffen to challenge the seven major Hollywood studios. Naturally, MGM was one of the weakest among the seven.

But Spielberg's attempt to create a new major studio wasn't well received by the others. A pie that had existed for over a hundred years—no one wanted to share it. So, despite ongoing collaborations, conflicts were inevitable. Soon, DreamWorks encountered a problem: a lack of distribution capabilities.

Even with the backing of Spielberg and the two other giants, DreamWorks could only release films in North America. For global distribution, they had to cooperate with the major studios. Otherwise, many of their films simply wouldn't break even.

As a result, DreamWorks effectively ended up working for the big studios.

You want to create a new major studio? Keep dreaming!

Eric and Spielberg discussed the possibility of a partnership. Today's MGM resembled a martial artist with skills but lacking energy.

DreamWorks, on the other hand, had powerful resources but lacked the necessary techniques. One studio was almost out of the top-tier list, while the other was striving to become a new giant. Their alliance could be mutually beneficial.

Eric was particularly interested in DreamWorks' animation division, even though it lagged behind Pixar. Pixar, though not yet acquired by Disney, was already almost equivalent to an exclusive subsidiary.

In Hollywood, Disney remained unmatched. No one could challenge it or take Pixar away.

But Eric had a grand plan for creating animated films: Kung Fu Panda, Frozen, Zootopia—all of these projects could become hugely successful franchises.

Especially Frozen: its two parts brought in more than $2 billion in pure profit, and merchandise sales exceeded $10 billion, with a net profit of over $6 billion.

And let's not forget Marvel. After its acquisition, it would require major films, and the old animation division of MGM clearly wouldn't be up to the task.

In Hollywood, only Pixar and DreamWorks could take on such a challenge, so Eric turned his attention to DreamWorks.

That night, he and Spielberg talked for a long time. Eric was ready to share part of the international distribution profits in exchange for full support from DreamWorks' animation division.

He also proposed the first joint project—Frozen.

The parties were currently in secret negotiations. Spielberg was interested, but he needed to discuss it with his two partners.

But if they were smart, they'd make the right choice.

Once this partnership was established, the Frozen project would immediately go into production.

If all went well, Eric hoped to launch the project by this summer, though the completion timeline was uncertain—possibly two, or even three years.

As for the myth of seven years of production, as in the original timeline, that was complete nonsense. If you consider the time for script development and administrative delays, some films could be considered "long-term projects" spanning decades.

When Frozen hits the screens, Eric wasn't sure if the film would reach the billion-dollar box office as in the future. However, even if there's a difference, it wouldn't be significant.

Technology wouldn't be a limiting factor, because each era has its own technological features. Until a new technological revolution occurs, contemporary technology is the most advanced.

Perhaps decades later, viewers might find the visuals less impressive, but that wouldn't matter anymore, because the money would have already been made.

For Frozen, box office revenues weren't the main focus. The real profit lay in merchandise sales.

By that time, MGM would likely already have some influence at Hasbro and could leverage it to sell toys, as well as strengthen its position with these franchises.

However, like DreamWorks, Hasbro had its weaknesses—they were excellent at making toys, but with clothing, stationery, books, and accessories, they didn't do as well.

This didn't mean they couldn't do it, but the quality and sales volumes significantly lagged behind their toys and figures.

But the main market for Frozen was clothing, stationery, and media products. For example, sales of the two princesses' dresses alone could earn more than $2 billion.

This area brought in enormous profits, and Eric didn't want to share it with anyone. Any sane person would do the same. Therefore, he needed his own factories and sales network.

Earlier, Eric had been racking his brain over this issue, but when the Olsen twins came into the picture, he suddenly realized that Dualstar Entertainment might be the perfect fit for his goals.

Although Dualstar Entertainment wasn't large, its value was about $600-700 million. But it was well-structured and included all the necessary elements.

This became possible because the sisters had started their careers in childhood, and their business was focused on selling children's products: clothing, accessories, stationery—they had it all.

Over the decades, they had established their own factories and formed a full-fledged sales network operating not only in North America but also in Europe.

When Eric considered the value of the Olsen twins, he realized that Dualstar Entertainment could be the essential link in his plan.

If all these resources were combined, MGM would handle franchise production and distribution, DreamWorks would create animation, and Hasbro and Dualstar Entertainment would take on a significant portion of the peripheral merchandise sales, laying the foundation for a powerful production chain.

Hasbro was already part of this chain, and finalizing a deal with DreamWorks didn't seem too difficult.

The only thing left was to bring the Olsen twins on board to complete this plan.

"Company shares!"

The Olsen twins turned pale. This was crucial for them.

"Yes, but not for free. I'm not someone who likes to get things for nothing. I'll buy them at market value."

"Think about it. If MGM acquires shares of Dualstar Entertainment, it means we're in the same boat, and the Cooper family will be closely tied to the Olsen family."

"Only then can I fully commit to your promotion and support, because it will be in my best interest, right?"

"The film Blue Is the Warmest Color is just the first step. Next, there will be another major project with a budget of over $200 million, also featuring two female leads, and we plan to launch it by summer."

"Additionally, MGM is going to invest in a wedding film, again with two female leads. It would be perfect for you. You've probably heard about last year's success with My Big Fat Greek Wedding."

Eric continued to reel them in, and the Olsen twins listened with bated breath.

"Eric, you're making reasonable points, but this is all too sudden. We need time to think it over," said one of the sisters.

"I understand. You have time to think, but I hope you make a decision as soon as possible. Then we can compete for an Oscar next year!"

Boom! Boom! Boom!

The sisters' hearts raced again at the thought of a possible Oscar nomination.

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