Chapter 366: Investing in Titanic
[Chapter 366: Investing in Titanic]
Worried that Monica and the others might catch on later, Lily had advised him not to use too violent moves since she didn't want to lose out on her share of the main building's bedroom resources.
The two of them indulged in some lighthearted fun in the office for over half an hour, and after Lily arranged her dress and stockings, she left, satisfied.
As Link admired the slender waist and rounded curves of her professional outfit, he thought to himself that Lily had truly become a stunner.
---
After Lily left, Link began handling his work. As the year came to a close, he needed to review the departmental summaries while also preparing for next year's new movie projects to help the company outline its film budgets and production plans.
Currently, the company had a tentative list of 12 movie projects.
The first was The Rock, with a production cost of $100 million. Link planned to direct it himself, with his pay structured as 25% of the North American box office and 20% of the global take.
The second project was Rush Hour, where Link would serve as writer, producer, and editor, featuring Jackie Chan, Chris Tucker, Tom Wilkinson, and Joey Wong, and it had a production cost of $30 million.
This film was in the preparation phase in August and would begin shooting in Los Angeles soon.
The third project was Toy Story, an animated film from Pixar Animation Studios based on the original studio's short film Tin Toy, with a production cost of $30 million. Production commenced in July, and it was expected to finish by February, with a plan for a release at the end of next year.
The fourth was Jim Carrey's comedy Liar Liar, directed by Tom Shadyac. The film followed successful lawyer Fletcher, who often bent the truth to win cases, and ends up only able to speak the truth after standing up his son's birthday party, resulting in a series of hilarious events. Renee Zellweger played the role of his ex-wife, and Haley Joel Osment portrayed their son. The budget for this film was set at $45 million.
Other projects included Sofia Coppola's female-oriented film Girl, Interrupted featuring Winona Ryder and Angelina Jolie; development on three thrillers Fight Club, Primal Fear, and Paranormal Activity 3; and collaborations with Columbia Pictures on L.A. Confidential and Twelve Monkeys, as well as with New Line Cinema on Austin Powers: International Man of Mystery and The Wedding Singer.
As of now, these 12 projects were tentative.
However, to ensure the company remained competitive in the film market, the production department planned to add a few more projects by June next year based on the completion status of the current projects and the remaining budget.
---
Ding-ling-ling!
The phone on his desk rang, and assistant Annie informed him that James Cameron was on the line and wanted to talk.
Link picked up the phone to ask what the director needed.
Cameron was reaching out for help.
This year, two sea-themed blockbusters, Waterworld and Cutthroat Island, had both lost money.
Waterworld managed only $68.05 million at the North American box office and approximately $72 million overseas, leading to an estimated loss of around $100 million.
Cutthroat Island had only grossed just over $13 million in its two weeks of release, presenting an even larger anticipated loss.
Cameron's Titanic was also centered on a maritime theme, with a production budget soaring to $140 million, much like the previous two films, which made 20th Century Fox cautious about investing further due to the risks involved.
Additionally, Cameron was known for being very strict on set, which had led to numerous internal issues in the crew, causing production costs to rise consistently.
The original budget of $140 million had ballooned to $200 million, and it seemed the additional funds might not suffice.
Barry Diller, the president of 20th Century Fox, expressed open dissatisfaction with Cameron, unwilling to release further production funds.
Without additional funding, Titanic couldn't be filmed.
Cameron had to leave the crew and return to Los Angeles, seeking investment. He made six trips back and forth, even waiting outside Barry Diller's office three times but still couldn't convince Fox leadership to continue funding.
Fox insisted that filming needed to wrap as soon as possible, preferring to accept a half-finished product rather than face a further loss.
Cameron, feeling desperate, recalled Link's previous words and called him for assistance.
Link didn't immediately agree after hearing the details. Instead, he invited Cameron to the company for a chat, asking about the film's shooting progress and how much additional funds were needed to complete shooting, as well as how Guess Pictures' involvement would benefit them.
He also requested relevant materials about the Titanic crew to review personally.
...
In the afternoon, James Cameron arrived at Guess Pictures with the information. According to his report, the filming process for Titanic was about 40% complete, and they were in need of an additional $100 million to finish.
They offered the overseas distribution rights to Titanic in return for Guess Pictures investing $100 million. After Titanic's release, the studio would share the overseas box office profits accordingly.
This condition was quite appealing.
...
After Cameron left, Link instructed his board secretary, Annie, to contact several shareholders to convene a meeting to discuss the feasibility of investing in Titanic.
Producers Daniel DeVito, James Schamus, and others would attend the meeting.
During the board meeting, representatives from the capital firms -- Vanguard, J.P. Morgans, Goldman Sachs, and others -- expressed their reservations regarding the investment risk of such a film.
Link, however, stated that he had confidence in this project, as well as Cameron's abilities.
With his insistence, the proposal received full approval from the board members.
Guess Pictures committed $100 million to invest in Titanic.
Additionally, Guess Pictures invested $45 million to acquire a stake in Cameron's special effects company, Digital Domain, gaining 45% ownership.
This investment also helped Guess Pictures address a previous deficiency in special effects.
---
Link continue his busy work, finalizing the Titanic investment, moving ahead with the promotional campaign for the new film, and still working on promoting The Sixth Sense.
On Monday, Daniel DeVito represented Guess Pictures to sign an agreement with the Titanic producers and 20th Century Fox, officially confirming the collaboration.
After the agreement was signed, the news was reported in media outlets like The Hollywood Reporter and the Los Angeles Times, stating that Guess Pictures was investing $100 million in the once-ignored maritime project Titanic.
This caused quite a stir.
It attracted numerous media outlets to report and discuss.
Many industry peers couldn't comprehend why Guess Pictures decided to invest in this project.
Rumors had been swirling since late November that due to Cutthroat Island's poor performance, 20th Century Fox was looking to drop the related maritime-themed film, Titanic.
It was said that after Cameron returned to Los Angeles, he had approached multiple companies for investment.
However, many executives were disinterested as soon as they heard the movie was based on the 1912 sinking in the North Atlantic, not even waiting for Cameron to finish speaking.
After Waterworld and Cutthroat Island's abysmal financial results, Hollywood producers had become sensitive to terms like 'water,' 'ocean,' 'lake,' and 'large ship,' steering clear of such scripts.
Never mind that the Titanic project bore many similarities to Waterworld and Cutthroat Island, with higher costs and a greater probability of losing money.
Hollywood studios were even less likely to invest.
Yet Guess Pictures boldly decided to invest $100 million in acquiring the film.
Such an approach was quite audacious.
...
"What is Link thinking, investing in such a film without fearing losses?" Ron Meyer, the president of Universal Studios, frowned at an open Los Angeles Times spread in front of him showing photos of Daniel DeVito and Fox's producer Jon Landau signing the agreement.
"The guy is too confident; maybe he thinks the film will turn a profit," Michael Ovitz remarked while puffing on a cigar.
"Can this movie really be profitable?" Harvey Weinstein asked, furrowing his brow as he watched interviews about the film.
"Impossible; Waterworld and Cutthroat Island both lost money. Why would this film succeed?" Mario Kassar angrily responded.
"Yet so far, Link's films have never lost money," Ovitz sighed.
"This one is different; its production cost is sky-high at $200 million. To make a profit, the global box office would need to surpass $500 million, which is a tall order," Harvey said.
Everyone nodded in agreement.
Every year, over 200 movies were released in Hollywood, but in the last five years, only eight films had crossed the $500 million mark at the global box office -- averaging fewer than two each year.
The odds for this film crossing the $500 million threshold were slim.
That meant a strong chance of Guess Pictures' investment going down the drain.
Ovitz was also reminded that come next year, Guess Pictures would be investing $100 million in producing The Rock.
If both films were to fail simultaneously, Guess Pictures would face significant setbacks, leading to a major loss of prestige for Link within the company.
Guess Pictures might even face bankruptcy as a result.
"Ha! That's good news!" Ovitz exclaimed excitedly, patting his thigh.
"Exactly! If Guess Pictures goes under, all the better! As long as they're still around, none of us will be able to make a profit," Harvey squinted at the TV showing Link.
Mario Kassar nodded in agreement, looking towards Ron Meyer and Michael Ovitz, and again requested their assistance to help Carolco Pictures through its difficulties.
Harvey shrugged, "Mario, it's not that I don't want to help you; it's just that I'm powerless. Miramax is currently over a $100 million deficit, and if things don't improve, in two years, Miramax might also go bankrupt."
Ovitz expressed his apologies as well, stating that he had just joined Disney, lacking much influence and could offer no help.
Ron Meyer bluntly told Mario Kassar that Carolco Pictures was over $400 million in debt -- a hefty figure -- and unless an investment came from Wall Street, no one in Hollywood could resurrect it.
Alas~
Mario Kassar hung his head in defeat.
Meanwhile, the television continued to air an interview featuring Link.
*****
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