In late August 2006, Hollywood suddenly buzzed with news that Paramount had terminated its contract with Tom Cruise, validating the saying "All good things must come to an end."
Tom Cruise and Paramount had been working together for 14 years, and Cruise's films had contributed approximately 15% of Paramount's impressive records over those years.
"Though we personally adore him, we believe renewing his contract would be a mistake," said Summer Redstone, the man behind Paramount, in an interview with The Wall Street Journal. "Paramount cannot tolerate his recent behavior."
Prior to this, Paramount's public relations team had been working overtime all summer to dispel any reports that Cruise's eccentric actions might diminish his appeal.
The news sparked a huge media wave. Most thought that Summer Redstone was furious about the box office performance of Mission: Impossible 3 and felt that Cruise's controversial off-screen antics had hurt the movie's performance. Adding to the issue were the high profit shares on Cruise's end.
Despite the movie grossing nearly 400 million dollars globally, Paramount's earnings were still not as high as Cruise's profit share.
"We're practically working for Tom Cruise here!" Summer Redstone reportedly exclaimed during an internal meeting after his arrival at Paramount.
Meanwhile, Cruise's producing partner, Paula Wagner, deemed Redstone's remarks "shameless and disrespectful" and questioned his statements about the contract negotiations.
She claimed that the Cruise-Wagner production company had been the ones to cease talks with Paramount earlier that week and stated that it was time for Cruise and her to soar independently. They had secured $100 million from two hedge funds to support their independent production deal.
In Beverly Hills, Los Angeles, at the headquarters of ETA Agency, in Evelyn Capet's office.
CEO Ari Emanuel took a sip from the coffee Evelyn's assistant handed him. "Looks like Tom Cruise is having a rough time, huh? Even CAA isn't making any moves."
"What can they do? The one giving the interview this time is Summer Redstone. Who dares to argue with that?" Evelyn couldn't help but remember her son's words: true strength only comes when you have the authority to make the rules.
Summer Redstone and Rupert Murdoch are true entertainment tycoons. Holding vast capital, they are leagues above the top executives of movie companies.
Since Tom Cruise started dating Katie Holmes last year, he has been plagued by negative reports. Not only did he famously jump on Oprah's couch to showcase his happy relationship, but he also awkwardly kissed Steven Spielberg at the premiere of War of the Worlds, making the veteran director quite embarrassed.
Due to aging and the negative publicity, not only had his box office appeal waned, but his standing among fans had also dwindled. A recent survey by USA Today showed that over half of the fans found his recent actions "disturbing."
Besides the "couch-jumping" incident, his frequent controversial religious statements at public events also garnered a lot of resentment.
Furthermore, his very public relationship with Katie has become a punchline for people's conversations. And despite his daughter Suri being born several months prior, no one had yet seen her, leading to rumors about her existence or possible health issues.
"So, what's the plan?" Evelyn asked, guessing Ari was considering poaching Tom Cruise.
Ari Emanuel shook his head, "For someone at his level, the agency's role is minimal; it's more about equal partnerships. But currently, Tom Cruise hasn't made any public statements. The impact of Summer Redstone's accusations is quite significant."
"By the way, hasn't William Morris Agency already dropped Mel Gibson?" Evelyn suddenly asked.
"Oh Lord, Evelyn, you're not thinking about getting involved with Mel Gibson, are you? No way, he's got no place in Hollywood anymore," Ari Emanuel responded somewhat agitatedly.
Evelyn shook her head, "Don't worry, I have no interest in him. He almost had a fight with Charles in front of the media!"
Ari Emanuel sighed in relief, fearing Evelyn might be considering Mel Gibson.
"By the way, haven't seen much of Charles lately. Still in Asia? Capet Pictures' releases this year are going strong. They might surpass the six major studios in North American box office this year. He should come back to the U.S. to receive his accolades!"
Ari Emanuel noted that ETA's rapid growth in recent years was partially due to Capet Pictures' support from Evelyn Capet.
Evelyn was not just a shareholder but also the president of ETA, making her the official second-in-command.
"Charles? He is probably in Japan now. As the largest entertainment market overseas, Capet Entertainment has always valued it. He recently decided to build a new headquarters in Tokyo," Evelyn smiled.
"Capet Entertainment is focusing on establishing a strong presence in Europe and Asia?" Ari Emanuel asked, not knowing much about it, and looked at Evelyn.
Evelyn nodded, "Charles says the North American market will be fixed around $10 billion, with little difference from now; Competing in the overseas market is becoming increasingly vital, and he needs to focus on expanding it!"
Ari Emanuel nodded, "Charles now has the capability to ensure dominance over the six major studios in North America. Expanding overseas is an essential step. Looks like we need to seriously consider Charles' proposal to expand into the overseas market and sports agency business!"
Evelyn nodded, "The sports agency business is definitely a big market, but we need capital to support our expansion."
"In a couple of days, we should visit Wall Street and meet with David Bonderman from TPG Capital. TPG has always been interested in the entertainment industry," Ari Emanuel thought for a moment.
"At a recent party, David seemed interested in entertainment agency work and was quite impressed with ETA's growth over the past few years!"
Evelyn Capet nodded again. For ETA to develop, they needed the capital to support acquisitions and mergers.
Entertainment, fashion, sports, and finance were all arenas where they could expand their business.
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