After listening to Eisner, Simon didn't rush to discuss the distribution terms for 'When Harry Met Sally'. Instead, he said, "Michael, as far as I know, Disney doesn't prioritize its animation department. There were even rumours that you intended to cancel animated film production. If that's the case, why can't you produce 'The Lion King' for Daenerys Pictures?"
"Rumours are just rumours, Simon" Michael Eisner shook his head and said, "To be honest, I did consider closing the animation department. However, if I really did that, you wouldn't be sitting here talking to me right now. Our animation department is headed by Roy Disney. So, do you understand?"
Simon pondered for a moment, then nodded helplessly.
Roy Disney is the nephew of Disney founder Walt Disney, and the Disney family still holds a significant number of shares in Disney Pictures.
After Walt Disney's death, the overall quality of Disney's animated films had fallen far short of what it once was. In recent years, they could only maintain Disney's brand image by more frequently re-releasing classic animations.
However, as animated films were the foundation of Disney's origins, it was clear that Disney's senior management could not rashly close the animation department based solely on commercial interests; they also had to consider the feelings of the Disney family.
Relocating Disney's animation department to an old warehouse in Glendale to save costs was probably the limit of what the Disney family could tolerate. If Michael Eisner continued to push for Disney's animation department to become a 'contract manufacturer,' it was hard to say whether the Disney family would backlash.
Having understood this, Simon could only say, "In that case, Michael, let's forget about 'The Lion King.' I'll find another way. The script certainly can't be sold to you".
Michael Eisner said, "Simon, you have to understand, outside of Disney, you don't have any other options".
"I remember Universal just released 'An American Tail' last year, which grossed over $50 million, more than double Disney's 'The Great Mouse Detective'".
"That movie" Michael Eisner chuckled upon hearing this, "including director Don Bluth, several key animators were all employees who left Disney. And, Simon, if you want their team to help you produce 'The Lion King,' that's even more impossible".
Simon didn't quite understand the intricacies, but he merely shrugged and said, "There will always be other ways".
Michael Eisner tapped his fingers on his memo pad and said indifferently, "Well then, good luck."
Although Simon's scripts were highly sought after in Hollywood, Michael Eisner didn't push too hard when he heard Simon's firm stance. Unlike live-action films, animated films usually have production cycles of two to three years and high costs.
Who knows what the situation will be three years from now?
Seeing that the matter of 'The Lion King' could not be resolved, Simon shifted the topic back to 'When Harry Met Sally,' saying, "Michael, regarding the two directing contracts you just mentioned, I'm sorry, I cannot agree. At most, one, and perhaps this will be the last film I sign out. After this, I will only direct films for my own company".
Michael Eisner couldn't help but shake his head and laugh when he heard Simon say this, saying, "Simon, Coppola probably thought the same after 'The Godfather.' But after the massive loss of 'The Cotton Club,' he could only obediently direct 'Peggy Sue Got Married' for TriStar Pictures".
'The Cotton Club,' released three years ago by Francis Ford Coppola, was a complete disaster.
Due to various changes during filming, such as disagreements between the director and lead actors, and repeated script revisions, the budget soared from $25 million to $58 million, but the film ultimately only recouped $25.92 million at the North American box office. Coppola's Zoetrope Studios, ambitiously founded after the success of 'The Godfather' series, was consequently on the verge of bankruptcy.
Orion Pictures was coincidentally the distributor of 'The Cotton Club'.
Speaking of which, Simon didn't consider Orion this time, despite their still decent relationship, and instead sought cooperation with a major film studio, precisely because Orion was currently in an ambitious state and would be even less able to offer 'When Harry Met Sally' a good release slot.
Due to the box office success of several films last year, Orion, now financially comfortable, had already confirmed nine self-funded film projects. Coupled with films distributed for other independent producers, the company's distribution scale for next year was already on par with the Big Seven.
However, Orion clearly lacked the deep resources of the Big Seven.
Simon looked at those films, most of which seemed destined to flop, and understood why Orion, which had frequently produced films that were both box office hits and award winners, would gradually fall into difficulties in the coming years.
The massive success of a single film certainly couldn't offset the losses of multiple films.
"Perhaps I'll become the second Coppola" Simon thought, also smiling, and said, "However, Michael, everyone should have some dreams. What if they come true? So, only one".
Michael Eisner savoured Simon's words, but insisted, "Simon, if that's the case, Disney won't be able to give you the Easter slot".
Simon thought for a moment and said, "Michael, I can make some more concessions on the commission, 18%, what do you think?"
Michael Eisner still shook his head, saying, "I've seen the information on the screenwriter of 'When Harry Met Sally's' previous work, 'Heartburn'. Two big-name leads, Jack Nicholson and Meryl Streep, a production cost of $25 million, and a box office of only $25 million.
Simon, I don't think this current film will perform better than 'Heartburn' at the box office, so there isn't much difference between 18% and 15%".
"Michael, I think you've got one thing wrong. That film, 'Heartburn,' precisely because Jack Nicholson and Meryl Streep starred in it, only grossed $25 million. To this day, I don't understand who was so 'brilliant' as to put Jack Nicholson and Meryl Streep together in a romance film; they simply had no chemistry on screen. This current film, 'When Harry Met Sally,' I believe its box office will definitely be far superior to 'Heartburn'".
"Simon, your confidence is meaningless".
Simon thought for a moment and said, "Or, Michael, how about Daenerys Pictures directly buying Disney's Easter slot for next year?"
Michael Eisner asked, puzzled, "What do you mean?"
Simon looked at Amy, who had been quietly listening to their negotiation, and said, "Could you give me last week's box office report?"
Amy was also a bit confused but pulled a report from her purse and handed it to Simon.
Simon took it, glanced at the data, and then handed it to Michael Eisner across the conference table, saying, "Disney is re-releasing 'The Aristocats' from 1970 this Easter. It opened on April 10th on over 1,400 screens, and its current box office is $13 million. It will certainly last a few more weeks.
So, let's calculate a total box office of $16 million, with a 50% box office split, and a marketing and distribution cost of $2 million. Disney can earn $6 million in profit from this. Michael, Daenerys Pictures will pay $6 million as a fixed distribution commission, and Disney only needs to give us 1,000 screens next Easter. What do you think?"
Michael Eisner took the box office report, looked down at the data, and began to ponder Simon's novel cooperation proposal.
A fixed commission of $6 million, based on a 15% distribution commission rate, meant that the young man was valuing 'When Harry Met Sally's' North American box office at $40 million.
If 'When Harry Met Sally' could achieve a $40 million North American box office, including subsequent distribution revenues, it would definitely be a highly profitable project.
Thinking this, Michael Eisner quickly said, "Simon, it's not calculated that way. Besides the box office for 'The Aristocats', the re-release of this animated film can also stimulate its video and merchandise sales. Disney's revenue from it is not just $6 million".
Simon nodded and said, "Of course I know that, Michael. However, in addition to the $6 million, Disney can also have priority in buying out the distribution rights for 'When Harry Met Sally' through other channels. The North American video and television broadcast distribution rights for 'Run Lola Run' that Orion acquired will also bring them substantial revenue in the coming years. At the same time, you can also get one of my directing contracts".
Michael Eisner said, "Two".
Simon shook his head: "Only one, Michael. If you insist on two, then I can only say it's a pity".
Michael Eisner stroked the box office report still in his hand, re-evaluating for a moment, and said, "Simon, for 'When Harry Met Sally's' North American box office up to $40 million, Daenerys Pictures pays a fixed commission of $6 million. If it exceeds $40 million, Disney takes an 18% cut. If you agree to this, I agree to your other terms".
Hearing Michael Eisner say this, Amy couldn't help but glance at Simon, worried that he would immediately agree.
Calculating a fixed commission of $6 million for anything below $40 million, Daenerys Pictures had already taken on enough risk. There was no reason for Disney to take a higher distribution commission if the box office was better.
To Amy's disappointment, Simon, upon hearing this, immediately stood up and extended his hand to Michael Eisner, saying, "Deal".
Michael Eisner didn't expect Simon to be so decisive. Seeing the young man across from him extend his hand with a slight smile, he could only stand up and shake hands with him, but he felt in his heart that he might have been circumvented in some way.
Right.
Two film contracts.
Before this meeting, what he cared more about was signing Simon for two upcoming directing contracts.
Compared to 'When Harry Met Sally,' which didn't look particularly promising, the young man's two film contracts, in his opinion, seemed more valuable. After all, the profound filmmaking skills the other party displayed in 'Run Lola Run' were beyond the reach of many well-known Hollywood directors.
Now.
There was only one left.
It must be said that Michael Eisner did indeed guess Simon's intention. Although he had no intention of making any concessions on the number of film contracts, Simon did use some small tricks to divert Michael Eisner's attention.
Signing one additional film contract was already Simon's limit. He didn't want to be tied to several major studios like Spielberg.
In fact, if Columbia Pictures, which didn't impose additional conditions, had offered a higher buyout price and a suitable release slot, Simon would have even preferred to work with them. However, a buyout price of $3 million was simply too far from Simon's psychological expectation.
As for the cooperation with Disney, Simon's original psychological upper limit was even to raise the distribution commission to 20%. Now, although $6 million had to be paid for anything below $40 million, the commission rate was only 18% for anything above $40 million, which did not exceed Simon's maximum offer.
In any case, if the box office of 'When Harry Met Sally' didn't reach its former level, then failure was failure, and Simon could afford one failure. But if the film succeeded like the original, even though the distribution commission was a bit high, Daenerys Pictures still had a good chance of recouping its $15 million production cost, even if it was just the North American box office.
As the head of a major film studio, Michael Eisner wouldn't go back on his word to a young man once he had spoken. However, after shaking hands with Simon, he added, "In that case, Simon, Daenerys Pictures must pay the $6 million commission in advance after signing the contract".
Cash was in very short supply for any film company.
According to custom, distributors usually settled distribution commissions only after a film had left theatres, but if they could get $6 million in advance, Disney could even produce an additional film.
However, Simon directly shook his head and said, "Sorry, Michael, Daenerys Pictures has no money".
Michael Eisner listened to the young man, who had just been decisive and shrewd, immediately start playing rogue, and helplessly reminded him, "Simon, if I'm not mistaken, you should have recently received the buyout revenue for 'Run Lola Run,' a very large sum".
Simon shook his head again and said, "Michael, then you must also know that due to uneven profit distribution, I am preparing for a lawsuit with my girlfriend, and that money cannot be touched for now".
Although a little frustrated by Simon's recent decision, Amy almost burst out laughing when she heard him spout such nonsense.
Michael Eisner's expression became even more helpless, saying, "Simon, don't you realize you've revealed a big flaw? You just used the term 'girlfriend'".
Simon calmly corrected him: "Oh, sorry, ex-girlfriend".
Michael Eisner finally laughed too, shaking his head and saying, "Alright, for the sake of that not-so-funny joke".
With the basic contract framework established, the three continued to discuss some detailed issues.
Although he often heard many people around him talk about it, Michael Eisner was deeply impressed by Simon's shrewdness and decisiveness, far beyond his age, during their first meeting, and even specifically invited them to lunch together.
Having settled with Disney, Simon naturally wouldn't consider MGM anymore.
Compared to the actively progressive Disney under Michael Eisner and Jeffrey Katzenberg, MGM, after being bought by casino magnate Kirk Kerkorian in the 1970s, had almost become a real estate and hotel company.
Over the years, it had transferred its studios, built hotels, and auctioned off a large number of valuable props preserved from MGM's golden age. Perhaps feeling that the company's profits had been squeezed dry, Kerkorian sold MGM to Ted Turner, the owner of CNN, in March of this year.
Ted Turner was still raising funds to pay Kerkorian's asking price of $1.5 billion.
However, in Simon's memory, Ted Turner ultimately did not come up with this money. What this media mogul valued was actually only MGM's thousands of film copyrights accumulated over half a century.
Turner Broadcasting System was preparing to establish a brand new basic cable channel and needed a large amount of content resources.
Ultimately, after successfully retaining the most valuable collection of films from MGM's library and a period of upheaval, MGM returned to Kerkorian's hands.
The casino magnate then began to use MGM for capital operations in the coming years.
All in all, the company that was once Hollywood's most powerful film studio now had the least interest in making films.