Chapter 281: Tupac

[Chapter 281: Tupac]

"Has Aaron arrived yet?"

"Probably running into some trouble on the road. Link, I saw in the newspaper that Guess Pictures is in the second round of financing. You quoted $1.6 billion, not a cent less. Is that true?" Jerome Preston chuckled as they sat in the cafe at the Grove Shopping Center.

"It's true," Link replied nonchalantly.

"$1.6 billion! You're quite bold to ask for that," Jerome raised an eyebrow.

"Why wouldn't I be?" Link smiled slightly, his tone firm. "Not only am I daring, but I'll also do it with confidence. Guess Pictures earned nearly $2 billion in box office and merchandise sales last year, with profits exceeding $1 billion, which is more than many Fortune 500 companies. If a company in any other industry had an annual turnover of over $2 billion, its market value would be at least $10 billion. My quote of $1.6 billion is actually modest."

Jerome laughed loudly. "You said it yourself, that's in other industries. The film industry is high-risk, high-cost, and has a long return cycle. Plus, Guess Pictures has too few tangible assets for Wall Street investors to likely meet your demands. You should prepare for the possibility of failing to raise funds."

"It's alright," Link shrugged. "Offering a second round of financing is already a declaration of my willingness to share the profits from Guess Pictures' growth with investors. If they believe in me and the future of Guess Pictures, they'll accept this bid; if they don't, then I can't be blamed for going solo. Now it's time to test the investors' vision and courage."

"You're overly confident," Jerome shook his head with a smile. "It's similar to when you came to my office to pitch Buried. You told me that Buried would be a box office hit and increase theater attendance. I didn't believe you at the time, but you were right -- it created a box office miracle.

Now you have that same expression, showing you're confident about the future of Guess Pictures. If I had a few hundred million, I'd definitely buy into this deal and ride the wave with you."

Link chuckled, recalling his earlier experience promoting Buried at the Grove Shopping Center.

Almost three years had passed, and many things had changed, but the aspects concerning him had all progressed positively. The recent pressure from Wall Street on Guess Pictures was actually expected.

...

Guess Pictures had been raking in profits in the North American film market, making more money as an independent film company than the seven major studios.

Of course, Wall Street investors wouldn't remain indifferent to this lucrative opportunity. It was inevitable that the seven major studios would pressure Guess Pictures.

However, Link wasn't worried about the potential collusion between the seven major studios and the powerful capital behind them.

In the film industry, regardless of how strong a company's production capabilities or promotional resources might be, profitability ultimately depended on the quality of the films themselves. Even a film produced by one of the seven major studios could experience box office failure if it lacked quality, potentially facing bankruptcy due to substantial losses.

Conversely, a high-quality film could still find profitability even under competitive pressure or distribution limitations in the North American market, thanks to overseas markets.

Ultimately, a film company's survival in Hollywood depended on whether its products could win audience approval, rather than merely relying on production scale or marketing strength. Link had a box office subsidy system that alleviated his concerns about losses due to poor film quality, which was a significant reason for his ability to stand firm against the seven major studios.

On the other hand, the current state of the film industry also gave him plenty of confidence.

First, the seven major studios were divided among different interest groups, and their competition with one another was far more prevalent than cooperation. Getting them to put aside their longstanding rivalries to unite against Guess Pictures would undoubtedly face substantial challenges.

Secondly, although the media conglomerates behind the seven major studios were powerful, they controlled only about 45% of media resources in North America; the remaining 55% was in the hands of other independent media groups.

For example, Turner Broadcasting's CNN and TNT, ABC owned by Capital Cities/ABC, the New York Times operated by the Sulzberger family, as well as the Hearst and Forum media groups, all played significant roles in the North American media market. These media groups had direct competition with News Corporation behind Fox and Matsushita behind Universal, making it difficult to form a united front against Guess Pictures.

This fractured media landscape and complex competition further undermined the feasibility of united action among the seven major studios, offering Guess Pictures more market space and strategic opportunities.

As long as Guess Pictures was willing to invest, it could access ample promotional resources without worrying about being monopolized by the major media groups.

Finally, thanks to the Paramount Decree of 1948, American film companies and theater chains operated under a system of business separation, forcing cinema chains to actively seek out film screening rights for-profit.

Films under Guess Pictures often emerged as box office dark horses, achieving both commercial success and critical acclaim. Consequently, theaters placed greater emphasis on collaboration with Guess Pictures.

Link didn't have to worry about his films failing to hit theaters. This was also one of the reasons he felt unthreatened by a potential coalition among the seven major studios.

Considering these factors, in the face of pressure from the seven major studios and entertainment capital, all he had to do was withstand the pressure, remain prepared, continue producing competitive films, and secure more box office success. The pressure from the seven major studios would inevitably dissipate.

...

"Link, Jerome, sorry I'm late."

After a few minutes of chatting, Aaron Kutch, the deputy editor of The Hollywood Reporter, came in, apologizing for his tardiness.

The reason for his delay was that he had received a call while coming over about rapper Tupac Shakur being shot and injured in a recording studio in New York. Tupac was currently the most famous Black rapper in the music industry, and an actor who starred alongside Janet Jackson in the film Poetic Justice, which had performed well at the box office.

Tupac was also a hot topic in current news, having been in the spotlight for an incident involving a gun that accidentally discharged and resulted in the death of a 6-year-old boy in '92, leading to an investigation that ended with no charges due to lack of evidence.

In November of the previous year, he was investigated by the police for allegedly sexually assaulting a woman in a hotel, which was still under review, and now with him being shot, the news surrounding Tupac skyrocketed, making any coverage about him highly valuable.

Aaron had just arranged for reporters to interview Tupac in New York over the phone.

...

"I heard that there's infighting among rappers, dividing into East Coast and West Coast factions, often insulting each other. As a West Coast rapper, did Tupac's shooting have anything to do with the East Coast crew?" Jerome asked curiously.

"Uncertain, there are rumors suggesting some involvement from BIG and Puff Daddy, but there's currently no evidence to confirm that."

"Puff Daddy? Link, I remember you had some issues with him. You should be careful." Jerome glanced at Link.

"Just small matters from the past," Link shook his head. Last year while filming in New York, he had been harassed by Puff Daddy's crew. Link managed to leverage his connections within the New York police to give Puff Daddy a good scare, leading to Puff spending two weeks in jail.

Puff Daddy had ties to drug gangs and a criminal record with the police and FBI, so he was careful to behave.

Additionally, after becoming a billionaire, Link was someone who political figures sought to befriend. With his current status and financial capability, it was much easier to deal with Puff Daddy than to manage issues with the likes of Robert Downey Jr.

"Link, we won't waste your time any further. Can we start the interview now?" Aaron Kutch pulled out his laptop.

Link nodded. He had come to the cafe at Aaron's invitation, who had several questions he wanted to discuss with him regarding the rumors about the seven major studios pressuring Guess Pictures and the second round of financing for Guess Pictures.

Link also wanted to use the media to express his stance and generate buzz for Guess Pictures' second round of financing, so he accepted Aaron Kutch's invitation.

*****

https://www.patreon.com/Sayonara816.