Chapter 115: Deal Reached for 3 Film Collaborations
[Chapter 115: Deal Reached for 3 Film Collaborations]
Hearing Linton's words, Lou Wasserman and Levitt's eyes lit up. They had already heard that Linton Studios was planning films for Step Up 2 and Speed, and had long wanted to negotiate specific collaborations with Linton.
Unexpectedly, there were three films in the mix, including The Shallows. Once they realized The Shallows was a small commercial production with just a $6 million investment, they paid it little mind, focusing instead on Step Up 2 and Speed.
"How about we discuss film collaboration matters here while the others find another place to negotiate the overseas full rights deal for Step Up?" Linton proposed, seeing their attention fixed on the new film projects.
For overseas revenue settlements, both parties had long intended to use a full rights transaction. However, specific pricing negotiations naturally wouldn't have Linton, Lou Wasserman, and Levitt directly involved -- it would be left to their teams initially.
That way, even if negotiations got heated or contentious, it wouldn't affect the strong relationship among their top executives, who would only handle the final decisions.
So, Linton and Robert stayed in Lou Wasserman's office to discuss the new film collaborations with Lou Wasserman and Levitt.
The others, alongside Universal's negotiation team, found another conference room to negotiate the overseas full rights deal for Step Up.
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Lou Wasserman and Levitt both showed strong interest in the Step Up 2 and Speed projects, expressing hope to participate not only in distribution but also in investment and production.
Lou Wasserman even called Roman Garrett, director of production at Universal Pictures, to join the negotiations.
Step Up 2 was a sequel to a blockbuster hit with a modest investment, sure to bring in big profits. Naturally, Linton was reluctant to give up any investment shares.
But for the Speed project, Linton was open to introducing Universal's investment, with the clear condition that control of the project remained firmly in his hands, and at most 40% of investment shares would be ceded.
After lengthy and friendly discussions, both sides reached a preliminary agreement on the three film projects.
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Step Up 2 would be distributed by Universal Pictures, with distribution fees as follows:
- 20% cut on North American box office income
- 25% cut on overseas box office income
- 20% cut on all videocassette and TV rights income
- 50% cut on all movie merchandising income
The tentative release window was set for August, with specific dates to be finalized once the film was completed. Universal committed at least $10 million to promotion and guaranteed opening in no fewer than 2,500 theaters.
Additionally, Universal would assign a producer to serve as assistant production manager on set. Universal would also provide studio space at Universal Studios for filming. Of course, Linton Studios would pay standard market rates for salaries and rental fees.
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The Speed project involved a $35 million investment, including $1 million for the screenplay, $2 million for the director, $5 million for the lead actor, and a total of $8 million for Linton's personal acting fee, with no backend profit participation.
Neither Lou Wasserman, Levitt, nor Roman objected to Linton's acting fee -- given his status, it was a reasonable market price. Their greater concern was the investment share, hoping Universal would hold 50%.
However, Linton remained firm on the 40% maximum share, ensuring he retained control. Eventually, both parties agreed.
Thus, Speed would be a collaboration between Linton Studios and Universal, with Linton Studios investing 60% and Universal 40%.
Linton Studios would hold production control. After theatrical release, it could first draw 10% of the total income as production management fees, with remaining revenues shared according to investment percentages. Both parties would share the film rights proportionally.
The 40% investment from Universal was merely tentative, pending review by Universal's project audit committee. All film investments required approval from this committee, followed by majority endorsement before presentation to the board of directors. Only after board approval could the project officially begin.
Lou Wasserman, Levitt, and Roman were confident they could convince both the audit committee and board for Speed, but the process had to be followed.
Distribution terms for Speed matched those for Step Up 2. Considering Universal had Jurassic Park in June and Step Up 2 in August, Lou Wasserman and Levitt suggested a July release for Speed to avoid conflicts. Linton agreed to the July date.
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The Shallows was treated as an added bonus -- a small budget commercial film. It naturally didn't receive distribution terms like Step Up 2. Both parties didn't fuss over it, roughly agreeing on terms similar to Step Up's.
Universal would distribute The Shallows with fees as follows:
- 25% cut on North American box office
- 30% cut on overseas box office
- 20% cut on videocassette and TV rights
- 50% cut on merchandising
Tentative release was set for April, with specifics to be finalized when the film was completed.
After the film was finished, Universal would organize evaluations by film experts and conduct test screenings with randomly invited audiences.
If the film passed expert evaluation and earned an overall B rating or above from audiences, Universal promised no less than $2 million in promotional spending and at least 1,500 opening theaters. Otherwise, both promotion and theater counts would be halved.
Universal would also assign a producer to the set as assistant production manager and provide studio space at Universal Studios, with Linton Studios paying market-rate fees.
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With cooperation on the three films settled, it was already late afternoon. Lou Wasserman promised to push Universal's approval process for Speed quickly. Once approved, all three films would have formal cooperation agreements signed simultaneously.
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However, negotiations over the overseas full rights for Step Up weren't progressing as smoothly. The two sides had significant disagreements and some friction over the final price.
Linton, Lou Wasserman, and Levitt preferred not to personally get involved, instead authorizing their teams to handle talks, confident that a mutually acceptable agreement would eventually be reached.
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Universal Pictures' finance department, as efficient as Universal Music, handled paperwork swiftly. By Monday, the contracts were signed; by Tuesday, $67 million had been transferred to Linton Studios' account.
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Given The Shallows was scheduled to release next April and it was already mid-October, and although filming would be relatively simple, the schedule was tight. Linton instructed Blake and Zack to speed preparations, requiring shooting to start by early December at the latest.
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In the following days, Robert, Henry, Mary, and Goodman formed a negotiation team to continue talks with Universal on the overseas full rights for Step Up.
Meanwhile, Linton stayed home storyboarding sequences for Speed. That afternoon, Cameron Diaz called -- she had just wrapped filming her TV show White Collar for the evening in New York and would be returning to Los Angeles the next day, asking if Linton was home.
At the beginning of the year, Cameron had shot the movie August Love and finished by late June. Since Linton was busy stirring rumors with Naomi Watts then, he hadn't met with her, making Cameron a bit resentful for several days.
Later, she accepted the lead role in White Collar, just finished filming, and was eager to meet Linton.
Linton realized it had been six months since they last met and felt nostalgic for her charm, so he gladly agreed over the phone.
Since The Shallows was already in preparation, it was time to give her the script to start familiarizing herself and preparing for the lead role.
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