Chapter 171: There Isn’t Much Time Left for Us
Chapter 171: There Isn’t Much Time Left for Us
“Thirty percent is definitely impossible.” Eric leaned forward slightly and stared at Robert Shaye as he shook his head. Before Robert Shaye could argue, Eric continued, “If I have to give up thirty percent of the shares just to acquire a distribution company, then there’s no need for me to do it at all. That would be a loss outweighing the gain for Firefly. I could just as easily take that equity and cooperate with the major studios. With Firefly’s current momentum, I believe none of the current seven major film companies would refuse to work with me. I could even use that thirty percent to exchange for ten percent of the shares from MGM, the weakest of the seven majors.”
Once Eric finished speaking, Robert Shaye immediately retorted, “But in reality, Eric, you won’t do that. Once Firefly becomes a vassal of a film giant, it will basically lose any possibility of growing into a film company that can stand shoulder to shoulder with the other giants. Controlling second- and third-tier companies through acquisitions to prevent them from reaching a scale that threatens their own status is already a trick these large companies use all the time. I’ve spent more than twenty years in Hollywood and seen far too much of that.”
“Of course I won’t do that. I was only describing a possibility,” Eric said. “If I really had to give up thirty percent of the shares, then I would rather cross-exchange shares with the giants. So I also have my bottom line, Robert. I can give you at most ten percent. Of course, that isn’t all. I can also compensate you with some cash.”
Eric also stated his own price.
Ten percent was also the concession he had only made after thinking for a long time. He already felt that was a lot. Firefly would definitely need to bring in some partners in the future as well.
“Ten percent is too little,” Robert Shaye said. “New Line has been developed in my hands for more than twenty years. It’s like my child. If it merges with your Firefly, I don’t think thirty percent is excessive at all. Anything less than that, and I absolutely won’t agree.”
Eric almost laughed out loud.
“RKO was founded even earlier, and now it has vanished like smoke. United Artists was also founded very early, but unfortunately, it became a subsidiary of MGM. Robert, time alone doesn’t prove much. In 1981, United Artists was absorbed into MGM because of the massive losses from Heaven’s Gate, leaving only Warner Bros., Universal, Paramount, MGM, and Fox as Hollywood’s six major film companies. But what about now? Since Michael Eisner took charge of Disney in 1984, only five short years have passed, and the Big Six have become the Big Seven.”
Robert Shaye’s face flushed slightly.
Eric’s words carried a faint implication of comparing him with Michael Eisner. Although Robert privately admitted his ability was inferior to Michael Eisner’s, being told that face-to-face by a young man thirty years his junior still made his expression somewhat difficult to maintain.
In his agitation, he blurted out, “Say whatever you want, Eric. In any case, I insist on thirty percent of the shares.”
Seeing that Robert Shaye was getting somewhat agitated, Eric quickly soothed him. “How about this, Robert? Since both sides already have this intention, we can continue discussing the details afterward.”
“No need,” Robert Shaye refused. “If you won’t agree, then there’s no point discussing any specific cooperation.”
Eric felt a faint irritation rise in his heart. His fingers habitually tapped lightly against the tabletop a few times. Because of the tablecloth, they did not make the usual soft sound.
“Robert, you need to understand that there isn’t much time left for us.”
Robert Shaye heard Eric’s strange statement and became slightly curious, but he feared that asking would weaken his own momentum, so he held back and did not speak.
Eric did not continue circling around either. He went on directly, “Because of the strong development of peripheral channels such as videotapes and cable television, film has already moved beyond the small circle from more than ten years ago, when profits could only come through theaters. This has also caused film to receive more and more attention within the media industry. I believe that over the next decade, most of Hollywood’s giants will be acquired by media groups and become one link in their enormous industrial chains.”
“Once that trend forms, with the vast media resources and financial resources of media groups behind them, Hollywood’s major film companies will not only no longer need to worry constantly about bankruptcy due to failed investments, they will also be able to use their massive media-resource advantages to thoroughly consolidate their positions.”
“At that time, if second- and third-tier film companies don’t possess heaven-defying luck, it will become impossible for them to shake the position of major film companies backed by media giants. Their fate will either be acquisition by those major film companies, as you just said, completely losing the chance to join the ranks of the giants, or quietly scraping some leftovers from the market after the major companies divide it up.”
Robert Shaye suppressed the shock in his heart and did not show it on his face. He opened his mouth to argue, “Even if what you’re saying… has some truth to it, that will definitely still take many years. I believe New Line still has a chance, as long as…”
“No, you don’t have a chance,” Eric cut Robert Shaye off firmly. “Actually, this major trend already began several years ago when News Corp acquired 20th Century Fox. This year, Sony is acquiring Columbia. Seven majors, minus two. And I also saw in the newspapers that Warner Bros. intends to cooperate with Turner Broadcasting, which owns an independent television network, to establish a media group. If that becomes reality, then it will be seven majors, minus three. How long do you think the remaining four film companies can hold out?”
Robert Shaye fell silent.
Eric did not stop persuading him and pressed on. “Robert, this is the final opportunity for second- and third-tier film companies like ours to rise. The time left for us won’t exceed ten years, and may even be only five. Once we miss it and the industry map is fully planned out, then even if, as you said, you can still someday rely on luck and long accumulation to run New Line into a first-rate company with profits surpassing those old giants, you will still be destined to remain second-tier. Because those film giants will already have merged with media groups, and pure film companies simply won’t be able to compete with them.”
At this point, Eric once again thought of Lionsgate from his previous life.
Although Lionsgate had surpassed two old-established film companies in profitability through the Hunger Games and Twilight franchises, by then the remaining six major studios had already merged with media groups. Lionsgate was merely an independent film company. In terms of overall strength, matching the two giants it had surpassed still remained far out of reach.
“What you’re saying… all of this is still only hypothetical, isn’t it?” Robert Shaye could not help arguing again.
Eric could tell Robert Shaye’s resolve had already completely loosened, so his tone softened as well. “Robert, although it’s hypothetical, with your more than twenty years of experience in Hollywood, you can certainly judge how likely this hypothesis is, right?”
Robert Shaye lowered his head and looked at the little coffee remaining in his cup. “But ten percent is still too little…”
“Michael Eisner currently owns less than ten percent of Disney’s shares, and his net worth isn’t much higher than yours. But on Hollywood’s power rankings, he sits in the top three. More than ninety percent of Hollywood envies and looks up to him.”
“Robert, didn’t you say it yourself? Money no longer holds that much temptation for people like us.”
“Think about it. After Firefly acquires New Line, you can obtain the CEO position at Firefly. As for the profitability of the films I produce, I believe you won’t doubt that. In that case, I believe it won’t take us many years to enter the ranks of the film giants. At that time, we will definitely still have time to claim a place for ourselves in the future integration of media groups.”
“And then, the ten percent of shares you own may be worth over a billion dollars. If you continue operating New Line independently, how long would it take for New Line’s market value to exceed one billion dollars?”
“Twenty percent, Eric. Twenty percent. I can’t go any lower,” Robert Shaye said. Thoroughly moved by the future Eric described, he voluntarily made a major concession.
A faint, almost imperceptible smile of success appeared at the corner of Eric’s mouth.
Since Robert Shaye no longer stubbornly insisted on his so-called thirty-percent bottom line, then negotiations could continue.
Eric snapped his fingers to call over the waiter and handed over his credit card to settle the bill before saying to Robert Shaye, “Robert, we definitely won’t be able to produce any result right now, and it’s also getting late. So let’s choose a more formal occasion to conduct detailed negotiations.”
The moment Robert Shaye said he would compromise to twenty percent, he already regretted it.
He realized he had somehow been bewitched by a boy decades younger than himself. He almost wanted to slap himself across the face.
Although he had decided internally to make concessions, saying it out loud at this moment was far too inappropriate.
It seemed he had already made several mistakes tonight.
This made Robert Shaye no longer dare to underestimate Eric at all. At the same time, he also made up his mind that during formal negotiations, he absolutely would not confront Eric directly. Perhaps hiring an agent skilled in negotiation would be a good idea.
Seeing that Eric did not seize the opportunity to continue pressing down the price, Robert quickly followed the offered step down and nodded.
“Alright. It is indeed getting late. I should head back as well.”
After they said goodbye at the restaurant entrance, Aniston, who had been quiet all along, suddenly hugged Eric’s arm and stood on tiptoe with a smile.
“Wow, Eric, you were so handsome just now. Robert was completely dazed by your momentum. Hehe.”
Eric reached out with his other hand and brushed aside the long hair that had fallen over the woman’s forehead, smiling as he asked, “And you? Did you suddenly admire me so much that you wanted to kneel down and kiss my shoes?”