Chapter 102: Acquiring a Film Studio
Chapter 102: Acquiring a Film Studio
Cruise/Wagner Productions.
It was the film production company Tom Cruise founded in 1993.
The first movie they produced was Mission: Impossible.
‘He's a true prodigy in the film industry.’
At the age of 24, he became a Hollywood star with Top Gun.
At 31, he ventured into film production and created a legendary blockbuster!
While some of the movies Tom Cruise starred in might not have been as fun as expected, what you'd call a "flop" was rare.
‘He has an eye for movies.’
The Mission: Impossible series, The Others, Vanilla Sky, War of the Worlds, Jack Reacher, and more.
Many of the movies I enjoyed were produced with the involvement of Tom Cruise's company.
You could say he dedicated his life to film.
The sequel, Top Gun: Maverick, was also a film Tom Cruise co-produced.
Tom Cruise said with a serious expression.
"Top Gun is a movie I truly love."
"Yes, I know. I wouldn't have come all the way to Los Angeles if it weren't for this film."
"Bringing joy to many people..."
"That's why I founded Earth Channel. A good movie is more enjoyable on a big screen in a theater, but today's weary audiences may not have the luxury to wait."
A long silence followed. Then, Tom Cruise smiled and said.
"Do you have a place to stay in Los Angeles?"
"I was planning to book a hotel nearby."
One of the perks of being rich was that the finest suites in any hotel were often available.
"If you have time today, I'd like to invite you to my home. You can watch the movie and judge for yourself."
* * *
A house in Beverly Hills.
Tom Cruise's luxurious mansion, with its many rooms, naturally had a dedicated home theater.
On the large screen mounted on the wall, I watched the version of Top Gun that Tom Cruise had as a producer.
The movie began with a scene of fighter jets taking off and landing on an aircraft carrier.
‘People are going to love this.’
Nostalgia, perhaps.
It was a famous movie, and the trailer was incredible.
So I had thought it would be a captivating film as long as it was decent, but...
‘Wow...’
A movie about an aging pilot.
I was drawn into the story, which seemed to reflect Tom Cruise's own life.
‘This is good.’
There was power in its simple story.
Wouldn't the single word "entertaining" solve everything?
My desire to show this movie to as many people as possible grew even stronger.
"What did you think of the movie?"
It was late at night.
I answered Tom Cruise's question.
"I felt that you were alive."
* * *
In Hollywood, blockbuster movies grossed over $500 million.
This was why even Netflix couldn't easily secure Hollywood blockbusters.
It was difficult to break even under normal circumstances.
The next morning, Tom Cruise agreed to an Earth Channel release, provided I could persuade Paramount Pictures, the co-producer and distributor.
"Your words, that the audience would be waiting for Top Gun, moved me."
"Yes. I want to show a good movie to the people."
As soon as I left Tom Cruise's mansion, I sent a text to Ellie.
- Kim Shin: Ellie. I want to buy shares of Paramount Pictures.
- Ellie: How much?
- Kim Shin: As much as I can.
- Kim Shin: I think I need to become a shareholder for a smooth negotiation with them.
Using Wall Street financial institutions, I began acquiring a stake in Paramount.
As a film studio hit hard by COVID, its market capitalization was estimated to be around $12 billion.
"Is there a particular reason you're acquiring a stake in our company?"
The call came from the CEO of Paramount Pictures just a few days later.
"I want to invest in Paramount's film business. It's for the OTT service that Earth Resource is launching."
I had prepared for extreme opposition, but his attitude was exceedingly polite.
"I understand what you mean. I'd like to meet to negotiate."
The condition was to be provided with Paramount Pictures' films, including Top Gun.
I entrusted the negotiations to a professional American consulting firm, including Ellie.
It was a task that required a vast amount of data and calculations.
- Ellie: Paramount Pictures is basically saying it's difficult to provide unreleased films. Even though they only have two releases this year.
- Kim Shin: Is that a non-negotiable condition?
- Ellie: For them, the films they've already shot are their core assets. But the studio's situation isn't great either. This year's business has been a complete disaster, and they might not be able to release anything until next year, making it hard to avoid losses.
- Ellie: Film production costs are also soaring. In the end, it will all depend on the amount we offer.
Most problems can be solved with money.
‘If I spend over $300 million on Top Gun... it'll be hard to turn a profit with Earth Channel.’
Even with 20 million initial subscribers, at $5 each, I'd have to pour more than three months of total revenue into Top Gun alone.
It was nearly impossible to make a profit, but with more money, a way could be found.
- Kim Shin: Can't I just acquire Paramount Pictures outright?
- Ellie: That might be possible.
- Kim Shin: Really?
- Ellie: Viacom is the majority shareholder, and they tried to sell a 49% stake to a Chinese company four years ago.
- Ellie: Given the current situation, it might be possible to acquire them for $7 billion, even considering the management premium.
What started as an attempt to get the release rights for Top Gun had turned into considering buying the entire film studio.
The tail was wagging the dog, but it seemed like a decent method to seriously grow Earth Channel.
- Kim Shin: Then give it a try.
It was a major M&A, but the negotiations proceeded swiftly.
Viacom's management agreed to the sale of their stake.
- Ellie: They're asking how you'll handle the contract signing and final payment. If Earth Resource needs business funds, JPMorgan can provide a loan.
- Kim Shin: Personally, I'm not one to borrow money.
- Kim Shin: Let's sign the contract next week. And we'll pay the balance immediately.
- Ellie: Understood. I'll finalize the negotiations that way.
* * *
Jin Yoo-kyung stayed at Kim Shin's mansion for two weeks, thinking.
‘He's not making a move. Is he impotent?’
He had to be impotent.
Not knowing when the mood might strike, she put on makeup and wore pretty clothes every day.
And yet, he made no move!
"He doesn't seem impotent."
"Really?"
"The way he looks at you, ma'am, it's like an older brother looking at his younger sister."
"Is that so?"
Jin Yoo-kyung could understand her secretary's words.
He was so comfortable and treated her so well that she felt like family to him.
"I should head back to Korea for now."
She had to catch up on work at Mirae Group and had many other busy matters to attend to.
She held back her tears and said her goodbyes to Kim Shin.
"Stay well until I see you next time."
"You're coming back?"
"Sad to see me go, aren't you? But don't start waiting just yet."
"..."
"I'll cook you lots of delicious food when I come back."
"But the chefs here are really good."
"It's not as warm as a home-cooked meal, is it?"
"..."
* * *
After Jin Yoo-kyung left, the house felt much more comfortable.
I knew how she felt, but her aggressive approach made me avoid her even more.
‘Do I really have to get married?’
Meeting someone, falling in love, starting a family, having children.
Wasn't my year with Han Chae-won too awful to expect the happiness of a normal life?
I wouldn't go through that again if I married another woman, but...
For now, working was far more enjoyable than the thought of marriage.
"Jong-yeop."
"Yes."
"Let's look for a house."
"Are you moving to a new house? I suppose this one isn't that spacious with all the bodyguards."
It had only been a few months since I moved into this house, but my wealth had grown enormously in that time.
I was increasing the number of bodyguards in proportion to my increased wealth.
In America, where guns are legal, I felt a strong need to prepare for any eventuality.
‘You never know what kind of lunatic is out there.’
In India, I had casually eaten street food, slept in a barn, and even swum in a dirty river.
Those days remained a fun memory, but that one experience was enough.
"Find another mansion, one with an ocean view."
"An ocean view?"
"Yes. I want a house where I can see the ocean from my bedroom."
A reward, you could say, for all my hard work and the money I'd earned.
Working so hard builds up stress, and I thought it was important to rest well too.
"Sir. How about near Los Angeles? There are quite a few magnificent mansions there."
"That's not a bad idea."
It's not like I'd be going to the beach house often.
I liked Los Angeles when I visited recently.
It seemed like a good place to stay when I had business in Los Angeles.
‘If Earth Channel does well, I might have a lot of work to do with Hollywood.’
So, Lee Jong-yeop found a mansion with a view of Laguna Beach.
He showed me pictures he'd taken himself, and I liked everything from the beach to the city scenery.
"$50 million?"
"Yes. It's on a hill, so it has a great view of the beach, and it's a city where many artists live. The buildings themselves are beautiful."
"That'll be a new experience."
"A lot of beautiful women visit there, too."
I didn't even hesitate for five seconds before deciding to buy the house.
Just two and a half years ago, I would get incredibly stressed every time the price of Bitcoin rose or fell by 10 million won.
I could feel for myself how much my life had changed.
* * *
Preparations for Earth Channel were complete.
[ Earth Resource Acquires Paramount Pictures in Surprise Move ]
[ Top Gun: Maverick to Premiere on Earth Channel ]
[ Games, Broadcasts, Movies. Earth Channel Gathers All Content in One Place ]
Even without any media promotion, Earth Channel became widely known to the world.
Acquiring management rights of Paramount Pictures and securing the OTT streaming rights for Top Gun.
For every person who watches Top Gun on Earth Channel, $4 will be paid to Paramount Pictures.
That money was slated to be paid as running guarantees to the co-producers and actors.
- This is insane. We can watch Top Gun on Earth Channel!
- Earth Channel is going to be a hit the moment it launches.
- No doubt. I'm signing up immediately.
- There are no good variety shows these days. A lot of them are scheduled to be released on Earth Channel.
- Producers from broadcast and cable are all switching jobs.
- I heard they're releasing over 20 Korean movies starting in November.
- How much is the monthly subscription?
- Not announced yet. Probably around the same as Netflix?
The interest and reaction to Earth Channel in Korea were explosive.
The launch of Earth Channel was set for November 1st.
As the scheduled date approached day by day, I found myself getting excited for no reason.
Diane, the head of content for Earth Channel, said.
"Considering your popularity in Korea, sir, I think we can secure over 30 million users on the first day."
At least 5 million from Korea.
The calculation was to attract 23 million subscribers from the U.S. and over 2 million from other countries.
"That's a lot."
"Yes. We should be able to draw in more than 70 million subscribers in the first month."
Netflix's subscriber count had surpassed 200 million.
The plan was to rapidly chase them down with a low price and a famous movie.