Chapter 201: Box Office Rankings
[Chapter 201: Box Office Rankings]
At that moment, the latest North American box office chart was released.
According to statistics from The Hollywood Reporter, 267 films had been released in North America the previous year, accumulating a box office total of $4.82 billion.
Topping the chart was Jurassic Park, which brought in $357 million in North America and a global total of $978 million.
The runner-up was Final Destination, with a North American box office of $241 million and a worldwide total of $396 million.
In third place, Mrs. Doubtfire earned $219 million domestically and $441 million globally.
The Firm came in fourth with a North American total of $207 million and a worldwide total of $324 million.
The fifth spot went to The Fugitive, which saw $183 million in North America and a global total of $368 million.
The sixth was The Blair Witch Project, which grossed $158 million in North America and had a worldwide total of $310 million.
Sleepless in Seattle placed seventh, grossing $126 million in North America and $227 million worldwide.
Ace Ventura: Pet Detective landed in eleventh place with $98.37 million in North America and $135 million worldwide.
Among this year's top twelve films, three were from Guess Pictures.
...
Additionally, The Hollywood Reporter released a report listing the top ten film companies of 1993, based on box office performance of movies they distributed.
In first place was Warner Bros. With 24 films released, including The Fugitive, The Pelican Brief, Free Willy, and Demolition Man, the studio earned $650 million in North America and $1.57 billion worldwide, holding the top spot for box office totals for three consecutive years.
In second place was Universal Pictures, which released 12 films, including Jurassic Park and Schindler's List, generating $580 million in North America and $1.66 billion globally. Their global box office surpassed that of Warner Bros.
Columbia Pictures came in third, with strong performances from films like Sleepless in Seattle, Cliffhanger, and Ace Ventura: Pet Detective, totaling $537 million in North America.
Fourth place went to Paramount Pictures with $512 million, supported by the success of The Firm and Indecent Proposal.
In fifth place was 20th Century Fox, which released 16 films including Mrs. Doubtfire, Rising Sun and Rookie of the Year, garnering $485 million from the North American market.
Guess Pictures followed in sixth place with $447 million in North America and $817 million globally. The studio had released five films last year: The Blair Witch Project, The Wedding Banquet, Dazed and Confused, Final Destination, and Ace Ventura: Pet Detective being distributed by Columbia Pictures.
Final Destination's North American take was $241 million. The Blair Witch Project grossed $158 million in North America. The Wedding Banquet opened in August, earning $26.71 million domestically and $42.17 million globally, achieving a profit-to-cost ratio of 56 times, making it the highest-grossing ratio film in North America for 1993 aside from The Blair Witch Project.
Dazed and Confused premiered in November, accruing $5.63 million in North America and $3.27 million overseas. With a production cost of $2.2 million, it returned about four times its budget, marking it as a profitable film.
If Ace Ventura: Pet Detective was included, Guess Pictures would have a cumulative North American box office of $530 million across five films, with a global total of $892 million, surpassing Paramount Pictures and 20th Century Fox, placing them fourth.
Disney secured seventh place, releasing 15 films last year, none surpassing $100 million at the North American box office. The best performer was Cool Runnings, which garnered $68.85 million, while other movies languished at around $10 million.
Eighth place went to MGM, which had poorer results, releasing 13 films. The highest earner was Benny & Joon, which only commanded $23.26 million. In total, MGM's box office came to $213 million for all 13 films. The ninth and tenth positions were held by Miramax and New Line Cinema, respectively.
...
Following the announcement of the film industry report card, Guess Pictures made waves in both the entertainment sector and Wall Street. The Wall Street Journal referred to Guess Pictures' success as a "Hollywood miracle." Founded in early 1992, the studio had achieved numerous impressive results under Link's leadership over the past two years.
The Blair Witch Project set a record for the largest profit margin in film history and was the box office champion, while Final Destination took the runner-up spot. The Blair Witch Project was also a prime example of a successful low-budget film, ranking sixth for the year.
Such performance had never been seen in Hollywood before. Furthermore, in just two years, this independent film company surpassed both Disney and MGM, who each had over 70 years in the industry. This was indeed a remarkable feat.
When the 1993 box office rankings were published, a Wall Street consulting firm appraised Guess Pictures' worth at $300 to $350 million, placing it behind the major studios and New Line Cinema. However, Link continued to estimate the company's value at $500 million.
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While Wall Street capital hesitated, an investment firm called Glimmer Capital stepped forward with a $100 million investment, acquiring 20% equity in Guess Pictures, raising the company's valuation to $500 million.
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"Seriously? Is this investment firm out of its mind? Guess Pictures isn't worth $500 million!" Michael Ovitz seethed upon receiving the news.
If Glimmer Capital had not entered the scene, others could have negotiated with Link to buy in at a lower price for more equity. Now that Glimmer had made its move, it inflated Guess Pictures' market value to $500 million.
Others were either compelled to follow suit or back off entirely. Any hopes of acquiring shares at a low price would hinge on the performance of Guess Pictures' next film, which needed to flop.
Ron Meyer lit a cigarette and said, "You underestimate Link too much. He's not just some ordinary studio head; he's a billionaire. That Glimmer Capital might be one of his ventures. If you plan to take a shot at him and regain your losses from the bet, it'll be tough."
Michael Ovitz's face darkened. He had been leveraging capital power against Link and had indeed plotted a form of revenge against him. However, Link had no shortage of money, connections, and he was capable of writing screenplays, directing films, and generating media buzz.
Dealing with someone like Link would be very difficult unless large amounts of capital and connections were funneled into a full-scale assault, but that came with its own risks -- failure could result in even greater losses.
Michael Ovitz looked at Link's photo in the newspaper, regretting not signing him on back in 1992 or ensuring that his films suffered devastating failures that would keep him out of Hollywood. If only that had happened, he wouldn't be in this predicament now.
...
The phone rang on the desk, and Michael Ovitz picked it up. It was Greg Davis, the chief investment officer from Vanguard Capital.
Davis mentioned that Vanguard planned to invest in Guess Pictures and wanted him to contact Link to initiate negotiations. Ovitz insisted Link's asking price was too high and that it wouldn't be profitable to invest now; they could continue to put pressure on Guess Pictures to force Link to budge.
Davis rejected this proposal, stating that Guess Pictures had extraordinary potential and was worthy of investment. Bringing a profitable company to bankruptcy wasn't the goal of an investment firm. Ovitz had no choice but to concede.
...
Not long after hanging up, Paul Zummo, a senior partner at J.P. Morgan, called to propose an investment in Guess Pictures and requested Ovitz's assistance in negotiating.
Ovitz proposed that, given the impact of The Hollywood Reporter rankings, Guess Pictures' valuation was currently inflated. He suggested waiting until Link's next film was released. If it underperformed, Guess Pictures would undoubtedly be affected, and that would present a better opportunity to invest.
Paul Zummo chuckled, recalling Ovitz's last bet with Link, where he believed Final Destination would underperform; it hadn't. He argued that he was a great businessman but not a skilled investor, advising Ovitz to refrain from venture capital pursuits.
Ovitz felt embarrassed, as Paul Zummo subtly pointed out that he was an outsider and should not guide someone in the field.
Silently, Ovitz agreed to arrange things quickly.
...
"Vanguard and J.P. Morgan are looking to invest in Guess Pictures?" Ron Meyer asked.
Ovitz nodded, frowning.
"That was expected. Guess Pictures produces films with low investment and high box office returns, with higher pure profit margins than the major studios. Having six successful films in a row is very low risk. To investors, Guess Pictures is a gold mine; their eagerness to invest in advance is understandable," Ron Meyer remarked.
"Damn it! That guy won again," Michael Ovitz grumbled, slamming a hand on the newspaper photo, reluctantly reaching for the phone.
*****
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