Chapter 58: Business Reputation

The following day, Delon arrived at Seashore Entertainment at the agreed time. Seeing the simple office, he felt a bit nostalgic, recalling how Michael Davenport had previously sought him out. This time, Delon was the one making the approach.

"Hello, Michael," Delon greeted the young producer, who came out to meet him, quickly shaking hands.

"Nice to see you again," Michael replied, inviting him into the office. "Please, have a seat."

Delon observed Michael discreetly. From the outside, Michael seemed unchanged from their last meeting, as if the success of "The Purge" hadn't affected him much.

"Congratulations on the success of 'The Purge,'" Delon said.

"Thank you," Michael replied, offering coffee.

Delon got straight to the point, asking, "I heard the overseas distribution rights for 'The Purge' are still with you?"

"Yes," Michael confirmed, "Lionsgate doesn't have the capacity for international distribution."

Delon nodded. "How about letting New Line Cinema handle it?"

"I'd like to work with New Line Cinema," Michael responded.

"$8 million," Delon proposed cautiously, "Sony Pictures will buy out the overseas rights to 'The Purge.'"

Michael smiled. "Your company lacks sincerity."

Delon remained composed and used to such negotiations. "We've had a successful collaboration before. We are trusted partners, unlike other companies."

Michael thought, "Commercial dealings have indeed taught these people thick skin." He recalled how New Line Cinema had ignored past collaborations when negotiating the North American distribution rights.

Michael half-lied, "Sony Pictures, Hollywood Pictures, Dimension Films, and Universal Pictures have all contacted me for 'The Purge's overseas rights, but I met with New Line Cinema first because of our partnership history."

Delon realized that his previous statements held no weight and said, "Michael, name your price. New Line Cinema wants to buy the overseas rights outright."

Michael smiled, "$40 million."

"What?" Delon exclaimed, "'The Purge' isn't worth that much!"

Michael calmly replied, "This is for the complete buyout of all overseas rights."

Delon knew this far exceeded his superior's budget and countered, "$10 million, including the sequel rights."

"I must decline," Michael responded.

The gap in their valuations led to an unproductive initial meeting.

Michael wasn't relying solely on New Line Cinema. Recently, many North American films had higher overseas revenues than domestic ones, a well-known trend. Other distributors had also contacted him.

In the afternoon, Chris from Sony Entertainment visited to discuss "The Purge."

"$40 million is too high," Chris began. Aware of the film's performance, he said, "I think $15 million is fair."

Michael smiled, "This morning, New Line Cinema offered $20 million, which I declined."

Chris frowned, knowing the film's overseas potential was much higher. No one wanted to reveal their bottom line upfront.

"$20 million doesn't leave us much profit," Chris argued.

Michael remained firm, "'The Purge' is expected to surpass $50 million in North America. Films with over $30 million domestically typically earn more overseas. This is a complete rights package, including all subsequent revenues. With Sony's distribution channels, profitability is assured."

Chris feigned reluctance, finally saying, "$20 million is my limit."

Michael countered, "$30 million. This includes both 'The Purge' and 'Survival Quest.'"

Surprised, Chris recalled that "Survival Quest" had only made $800,000 domestically. He mused that buying its rights could be wasteful.

Michael reassured, "'Survival Quest' has potential. With good management, it could make millions overseas."

Chris thought, "If that flop sells millions, I'll change my last name to Smith." Aloud, he said, "Sony Entertainment only wants 'The Purge.'"

"Apologies," Michael replied, "We're packaging both films together."

This package deal helped Michael spread the profits of "The Purge," effectively reducing the amount owed to investors.

Michael's strategy wasn't unique; bundling films was standard in Hollywood, often to offload flops.

The initial negotiations ended without agreement. However, over the next week, Michael also met with Dimension Films and Universal Pictures while keeping in touch with Sony. After "The Purge" crossed $40 million domestically, Sony agreed to buy the overseas rights for both films for $25 million.