Chapter 802 Conditions for Lending
There is a myth in Hollywood - in every economic crisis, Hollywood is a place where storms cannot spread.
During the Great Depression in the 1930s, one-quarter of Americans were unemployed, and people still counted their steel to watch the latest movies. People hid in cinemas because of escapism. The film industry was the only one that made Hollywood not hit but thrived.
The 2008 financial crisis was the worst since 1930. The economic downturn caused by the slump took over more than ten weeks and there was still no sign of ending. The poor people's houses were taken back by banks, and the rich began to auction their precious goods, from wives' $4,000 handbags to private jets that were reduced to $500,000.
Can Hollywood really be avalanche in the real estate market, stock market plummet, and 64,000 companies declare bankruptcy, and it is still a safe haven?
Hollywood is no longer the Hollywood of the last century. Major production and distribution companies have become part of the media group. Media groups with complex industrial revenue will definitely not be able to escape this financial storm.
When Wall Street plummeted, entertainment stocks were not spared. The overall decline of entertainment stocks in the United States was 41%, and the stocks of media groups belonging to each major film factory suffered a heavy blow.
"Time Warner-American Online" to which Warner Bros. is the world's largest media group. Its stock fell from a high of about $17 per share to a low of $7 per share, and the market value of the entire group evaporated by $25 billion.
Paramount's boss, Viacom Group, is the biggest loser among the five major media groups in the United States. Its stock dropped from a stock of $45 at the highest point to a stock of $12. Some financial magazines speculated that Viacom's Summer Redstone "maybe they are no longer a billionaire."
Paramount Pictures itself has encountered the dual nightmare of Wall Street investment withdrawal and its dream factory Spielberg split up, becoming one of the most difficult major film studios outside MGM.
Another big loser is Sony Columbia, where Sony's stock has shrunk by 65% and has already reached the brink of bankruptcy.
In comparison, Walt Disney's life is one of the best among the five major media groups. Although revenue in the fourth quarter is expected to decrease by 13% compared with the same period last year, up to $2 billion, it will not have much impact compared to revenue that has exceeded $43 billion this year.
Although the sudden decline in TV advertising and the sharp decline in theme park revenue have hit Disney's revenue, compared with the stock prices of other media groups plunging by half, Disney's stock price has experienced several fluctuations and its market value has declined by less than 15%, which is already the biggest winner.
Of course, there are large amounts of Disney stock selling in the stock market, but Ryan has long asked Scott to prepare a huge cash flow and use multiple foundations to distribute it, which has stabilized Disney's stock price to a certain extent.
Several Disney branches have experienced revenue declines, with only two exceptions.
One is Flix Netflix, which announces the end of the videotape rental business model with a unique DVD mail rental method. Users sit at home, wait for the post office to deliver the video to their door, and after watching the disc, they seal the envelope that Flix comes with and send it into the email address.
This can be said to be a good way to avoid the pain of the financial crisis.
The other is Marvel Comics. The craze triggered by "Iron Man 2" has not yet retreated, and their comic business has been stable in revenue.
The biggest impact of this financial crisis is actually that Wall Street capital withdraws from Hollywood in large numbers. The two sides ended a short honeymoon cooperation period, and many banks no longer invest in the high-risk film industry. Many Hollywood companies have to cut off some projects one after another. The reduction of these projects also means that insufficient start-ups will eventually be reflected in every class that constitutes Hollywood.
Those big-name stars are no exception, not having enough work. They cannot maintain huge expenses.
However, the team behind Hollywood stars are all smart people, and many of them have embarked on the route of making money overseas.
For example, after ending his long-term madness and obesity, Britney Spears embarked on the road of a world tour, allowing fans around the world to pay for it; for example, Sylvester Stallone, who had filmed "The Expendables", ran to India and planned to make money in Bollywood for the time being...
Compared with celebrities who can make money overseas, major Hollywood brands have had even harder life. Wall Street withdraws funds, which has caused their working capital to be seriously scarce, and they have announced production cuts.
Among the six major brands, Paramount Pictures is the saddest. Deutsche Bank has shelved an investment agreement with Paramount of up to $450 million, which has made them lack sufficient funding for at least 30 films. On the other hand, after three years of unpleasant cooperation, Spielberg of DreamWorks has always wanted to split up with Paramount, and now it has reached a point where they have to.
Paramount Pictures wants to ask for help from its parent company Viacom, but Viacom can only protect itself now. Unlucky things are one after another. Paramount was jointly sued by Allianz Risk Transfer and Marathon Structure Financial Fund for past projects involving Paramount Pictures for misleading and fraud, and encountered credit freezing.
Spielberg's New Dream Factory has a bad life. Although he was lucky enough to escape the credit freeze because of the separation, he also lacked funds and had to put aside several movie projects and wait to get illusory from an entertainment company called Reliance in India.
If you want to raise funds, major banks and financial institutions are now unable to take care of themselves and are away from Hollywood at the speed of escape. This is not so easy.
But Ryan is different. He and Scott's team have long been fully prepared. This is the moment he has been looking forward to. Only by seizing the current opportunities can he ensure the smooth implementation of future plans.
"Stephen..."
Walking to the golf ball, Ryan tried to swing the club, hit the white ball hard, and then turned around, "I heard that DreamWorks don't want to participate in the release?"
"I think DreamWorks should focus more on production."
Hearing Spielberg say this, Ryan nodded, jumped into the electric car, patted Taylor on the back of the driver's seat, and immediately started the car and drove towards the leisure area by the sea.
Spielberg continued, "You should know that we are better at producing."
"How about leaving the release to Disney?" Ryan threw the club behind, "I promise to charge only 10% of the issuance fee."
"This is not something I can decide for myself." Spielberg held his glasses, "Besides, DreamWorks can't even find the funds for making videos..."
"The agreement between you and Reliance Group in India has not been reached yet?" Ryan asked in time.
"Not yet." The old man shook his head, "It's not easy for Indians."
"Alison, concentrate on driving."
Warned Taylor, Ryan looked at Spielberg and did not go around the circle, "I still have some funds in my hand. If DreamWorks urgently need it, I can lend it to you."
Hearing Ryan's words, Spielberg's eyes lit up immediately. Even if he got the money at an interest rate higher than the bank, he was willing. After all, he had no funds and could not even start construction in DreamWorks.
But Spielberg has been a talented person who has been living in Hollywood for many years and understands that there is no free lunch in the world, even if both sides are very good friends.
"Tell me, Ryan." Spielberg was very direct, "What are the conditions?"
"How many do you need?" Ryan asked.
"One hundred million dollars, at least." Spielberg seemed to speak out at the lion, "of course the more, the better."
"I can personally lend to DreamWorks at bank interest rates of $300 million to $400 million."
Watching Taylor tacitly drive the electric car onto the uninhabited road, Ryan retracted his gaze, "A Oscar for Best Actress and An Oscar for Best Actress."
"I can't guarantee such conditions."
No one can guarantee the award, Spielberg shook his head directly.
"Stephen, I'm just borrowing your connections." Ryan knew that, too, "and then you're responsible for lobbying me for the old-fashioned schools of Jewish people this year and next."
Although he knows many people, age is a problem. As a representative figure of Jewish people rooted in Hollywood for more than 40 years, Spielberg is definitely the most suitable candidate.
This public relations job is not an exaggeration, and in fact, there are not many things to be responsible for.
"Is there any more?" Spielberg asked again.
"Of course." Ryan said deliberately and seriously, "If possible, I hope you quit DreamWorks and join Disney."
"Okay, Ryan." Spielberg knew he was joking, "I can agree, but I don't promise to get those two little golden men."
"It's okay." Ryan never puts his hopes on a single side. "I'll call Scott back and his people will contact you."
Then, the two changed the topic and talked about the production industry that was even more miserable than major brands.
Compared with major companies with guaranteed returns, movies rely more on foreign investments. Their current situation can no longer be described as difficult.
Of course, if there is an opponent's movie, an opponent's actors, and a partner's budget, you can still get investment.
The opposite movie refers to comedy, action movie, horror movie or thriller movie; if it is a serious drama, there must be big stars; while other themes that the producer loves, death, suicide, schizophrenia or discussion of women's rights, are ignored at this time.
It was not until the evening that Ryan and Taylor left the club separately with Spielberg and rushed to the next business meeting. The meeting targets were Paramount Pictures, which had more crisis and trouble than DreamWorks. (To be continued, please search for Astronomy, novels are better, updated and faster!
Chapter completed!