After a two-day rest in Park City, Simon returned to Los Angeles, once again surrounded by a busy work schedule.
Santa Monica.
In the conference room of Daenerys Entertainment headquarters, Simon, Amy, and CAA president Michael Ovitz sat around the conference table. The purpose of this meeting was to discuss Daenerys Entertainment's upcoming films, 'Rain Man' and 'Steel Magnolias'.
The main production plan for 'Rain Man' had already been finalized, with only a few minor details remaining, so both parties did not waste too much time on it.
When it came to 'Steel Magnolias', the atmosphere became tense.
Daenerys Entertainment wanted to invite CAA's director Herbert Ross and actress Sally Field to participate in the film. These two were also the original creators of 'Steel Magnolias'. However, the conditions Michael Ovitz offered were unacceptable to Simon.
"Michael, a package deal of $10 million for Herbert Ross and Sally Field is too high. 'Steel Magnolias' is an ensemble film. If I pay high salaries to Ross and Field, other actors will also demand more, and Daenerys Entertainment will find it very difficult to bear this project. Therefore, we can offer Ross a salary of $5 million, and as for Ms. Field, only $1.5 million".
Herbert Ross was not only the director of the original 'Steel Magnolias', but he also directed Michael J. Fox's 'The Secret of My Success' last year, which grossed over $60 million at the North American box office. Before that, Herbert Ross's 1984 musical film 'Footloose', with a budget of $8 million, achieved an $80 million box office in North America, also earning the film company a fortune.
Hollywood directors' worth is ultimately determined by box office performance, so Herbert Ross was definitely worth $5 million.
However, although Sally Field won two Best Actress Oscars in 1979 and 1984, this actress basically had no box office appeal. In the 1980s, not many Hollywood actresses commanded more than $2 million. Since 'Steel Magnolias' is an ensemble film, Simon could only offer $1.5 million.
Upon hearing this, Michael Ovitz stared intently at Simon, a habitual posture during his negotiations, and said with dissatisfaction, "Sally is a two-time Oscar winner, Simon, do you think $1.5 million is possible?"
Simon was not affected by Ovitz's gaze in the slightest and said, "That was years ago, Michael. We all know that no one in Hollywood can command a lifetime of A-list salaries with just one or two Oscars. Compared to Ms. Field's box office appeal, $1.5 million is already very high".
"That's impossible," Michael Ovitz shook his head. After a pause, he softened his tone slightly and said, "Alright, Simon, considering the specific circumstances of this film, I can make some concessions. Herbert for $6 million, Sally for $3 million. However, you must agree to two other conditions: first, all other supporting actors in the film must be selected from CAA. Second, Robin is still very interested in 'Dead Poets Society', and I hope you can give her the lead role".
"If you insist on these demands, Michael, my answer is the same as yours: that's impossible. First, I don't intend to make 'Steel Magnolias' a CAA package deal. Second, De Niro has already agreed to star in 'Dead Poets Society', and I can't give the role to Robin Williams".
Three weeks of limited release had built up enough buzz, and 'Good Morning, Vietnam' officially opened wide last Friday, raking in $11.75 million at the box office over the weekend. Media predicts the film's fourth-week total will exceed $16 million. As a hot film destined for a long run, 'Good Morning, Vietnam' is expected to break $100 million at the North American box office in the near future.
As the male lead, Robin Williams successfully transitioned from a second-tier actor to an A-list superstar.
At the end of last year, CAA's last-minute change of heart on the day of signing meant Daenerys Entertainment missed out. While Simon regretted this, he had no intention of being led by the nose by CAA. The company had already finalized two film contracts with De Niro for 'Dead Poets Society' and 'The Sixth Sense'. Although the contracts hadn't been officially signed yet, Simon wouldn't go back on his word like CAA.
After they finished speaking, neither said anything else. After a moment of stalemate, Ovitz leaned back in his chair and said, "Perhaps our meeting today can only end here".
Simon stood up and extended his hand across the table to Ovitz: "Then, Michael, I hope we'll have another chance to cooperate next time".
Michael Ovitz was taken aback. He didn't expect Simon to be even more decisive than himself. This young man's words clearly meant that Daenerys Entertainment would no longer contact CAA regarding 'Steel Magnolias'. As for 'Dead Poets Society', there was even less room for manoeuvre.
Standing up and shaking Simon's hand, Michael Ovitz advised, "Simon, you can't be impulsive in business. Reconsider, and you can call me anytime".
"I think I've already considered it".
"Then, I can only wish you good luck".
After seeing Ovitz off, Simon sat back down at the conference table, checked his watch, and said to Amy Pascal beside him, "Let's give up on Herbert Ross and Sally Field. We'll pick people from WMA and ICM".
Based on the stature of Herbert Ross and Sally Field, Daenerys Entertainment's budget for "Steel Magnolias" was $15 million. However, if they followed Ovitz's quote, the film's budget would definitely balloon to $20 million or even $25 million.
In the original timeline, 'Steel Magnolias' grossed $80 million at the North American box office. Even with a production budget of $25 million, Daenerys Entertainment could still profit, but relative to the company's planned self-distribution total investment, Simon could only hope for profits from subsequent other distribution channels, which would greatly extend the payback period.
Although Amy Pascal really liked the story of 'Steel Magnolias', which tells the lives of women in a small Southern American town, her box office expectations for the film were far lower than Simon's. For business considerations, Amy actually wanted to make this film a low-budget production within $10 million.
Therefore, upon hearing Simon's decision, Amy did not object, but instead brought up another matter: "Simon, we need to talk about the company's affairs".
Simon perked up and asked, "What's wrong?"
Amy handed over a folder and said, "Take a look first. Simply put, the company's funds are no longer sufficient".
Simon took the folder and opened it. Inside were budget sheets for Daenerys Entertainment's series of film projects and various other expenditure reports.
Excluding 'When Harry Met Sally' and 'Pulp Fiction', which were already in post-production, Daenerys Entertainment had officially greenlit six films: 'Basic Instinct', 'Scream', 'Steel Magnolias', 'Blue Steel', 'Rain Man', and 'Dead Poets Society'.
Among these, except for 'Basic Instinct', which had a budget of $20 million and was co-produced by Daenerys Entertainment and 20th Century Fox, the other five films were all solely invested by Daenerys Entertainment.
The budgets for the five films ranged from $10 million to $25 million, requiring a cumulative total of $75 million. After reserving this fund, the $100 million loan Daenerys Entertainment obtained from Wells Fargo Bank would only have $25 million left.
However, out of that $25 million, just acquiring the rights to 'Charlie's Angels' cost $7 million. The deal with United Artists, the expenses for the two screenplays 'The Hobbit' and 'Rain Man', amounted to $2 million. Recent copyright acquisition expenses for titles like 'Spider-Man' and 'Teenage Mutant Ninja Turtles' also totalled several million dollars. Including the company's various operating expenses, Daenerys Entertainment's available liquid capital was now just over $10 million.
Amy looked at Simon, who was reading the document, and added, "'Final Destination' went off-screen last week, with a cumulative North American box office of $72.61 million. According to the contract, we will receive a 10% box office share next month, which is $7.26 million. However, if we follow your offer to Saul Zaentz to buy the rights to 'The Lord of the Rings' series, or perhaps 'The Silmarillion' from the Tolkien Estate, our current funds will definitely not be enough.
The several scripts you picked in Park City, the planned TV shows, and the future marketing and distribution costs for the 'Scream' films, all of these require significant investment. Simon, I can feel your urgency about many things, but I think you should slow down. You'll only be twenty next month; compared to most people in Hollywood, you have plenty of time".
Simon flipped through the documents in his hand, and immediately understood more deeply why Cannon Films, De Laurentiis Entertainment, and now New World Entertainment would suddenly fall into difficulties amidst a 'booming' period.
The entertainment industry is simply too expensive, and the payback period for film and television projects is frustratingly slow. Once the income from projects cannot cover expenses, and external funding cannot be secured, a company will immediately head towards collapse.
If he didn't already possess a large amount of assets, if he didn't have the foresight advantage in selecting projects, Simon was certain that Daenerys Entertainment would absolutely follow in the footsteps of companies like Cannon Films in the next few years.
Simon actually understood the admonition in Amy's tone very well.
But, could he slow down?
As soon as he finished things here, he was going to meet with Terry Semel, CEO of Warner Bros. Pictures, to discuss 'Batman'.
If he slowed down, if he gave up 'Batman', according to the original timeline, this film would begin shooting at the end of this year, directed by Tim Burton, and be released in the summer of next year, becoming next year's box office champion.
By then, 'Batman', 'Superman', and even the entire DC universe would have absolutely nothing to do with Simon Westeros.
Due to the failure of 'Superman IV' last year, Warner's confidence in the 'Batman' adaptation was at its lowest point. This was also Simon's last chance to intervene in this top-tier superhero copyright. How could he possibly slow down?
Likewise, the films Daenerys Entertainment was developing, and the copyrights it had already acquired, were basically all projects destined for huge success in the coming years.
Once these projects successively achieve great success, if Simon were to set his sights on other novels or screenplays, it would definitely trigger a bidding war, making it even more difficult for Daenerys Entertainment to continue stockpiling more copyrights. Simon had to seize the opportunity while many people still regarded him as a 'fat sheep' to acquire as many IPs as possible at a lower cost.
In fact, he couldn't slow down on many things outside of Hollywood either.
He couldn't slow down.
After finishing the documents in his hand, Simon had already made a decision and said, "Amy, the expenses for acquiring 'The Lord of the Rings' and 'The Silmarillion' will be directly charged to Westeros Company's account. I will have George handle the negotiations with the copyright holders for these matters. The company will continue to proceed according to the original plan. For the three scripts I brought back from Park City, 'Some Girls' by Michael Hoffman and 'Metropolitan' by Whit Stillman, let's fast-track their approval.
Both of these films have very low budgets, perhaps not even $6 million combined, so they won't affect the overall situation. The '3000' script will be put on hold for now; I have other plans for it. Moreover, these are just budget expenditures; the money in the account won't be spent all at once, which leaves a lot of room for manoeuvre. 'When Harry Met Sally' is being released at the end of March, so we'll definitely have income coming in. If absolutely necessary, I'll transfer funds from Westeros Company, or we can continue to apply for loans here".
Amy felt Simon's resolute attitude and knew that persuasion was useless, so she could only say, "Adding two more films, that makes eight. I'm completely swamped".
Simon thought for a moment and said, "After I finish 'Pulp Fiction', I'll focus my main energy on the company's projects for the rest of the year. Signing a few more producers should definitely be enough".
For projects like 'Steel Magnolias' and 'Dead Poets Society', since he had decided against using the original cast and crew, Simon himself would have to invest more effort to maintain the films' original style and quality.
Simon actually wanted to see if these films could still be as successful as in the original timeline, even without the original creative team.
After all, for many upcoming films, Simon might not be able to assemble the original team, and he deeply disliked this invisible feeling of being constrained. He also didn't want to be held hostage by talent agencies like CAA over an actor's issue.
After discussing with Amy for another half an hour, worried about traffic congestion at noon causing delays, Simon left Santa Monica around eleven o'clock and headed to Burbank in the San Fernando Valley, north of the city.
Simon and Terry Semel had arranged to have lunch at a restaurant near the Warner Bros. Studio in Burbank.
When they arrived at the agreed-upon restaurant, Terry Semel was already waiting for Simon.
As they sat down and ordered their meal, Terry Semel smiled and asked Simon, "I heard you gave up on acquiring New World Entertainment?"
Simon nodded with a somewhat helpless expression, and said with a wry smile, "Yes, everyone wanted to fleece the fat sheep. A group of people drove the stock price up so high that I couldn't afford to buy it at all, so I had to let go".
Today was January 20th, Wednesday.
In New York, Westeros Company had already liquidated its shares in New World Entertainment yesterday. However, perhaps those investors on Wall Street, who had caught wind of the news, were still expecting Simon to make a comeback. Therefore, at yesterday's close, New World Entertainment's stock price still remained at a high of $11.5, far exceeding the $7.5 before the news became public.
After a brief half-month of operations, after selling all shares, Westeros Company earned over $11 million, which was not a wasted effort.
New World Entertainment, on the other hand, failed in its attempts to formally initiate acquisition negotiations with Westeros Company. Larry Kuper, after learning that Simon had liquidated all his shares, threatened to sue Westeros Company for malicious manipulation of New World Entertainment's stock during an interview with a newspaper yesterday afternoon. There has been no further development on this matter yet.
Regardless, Simon would certainly not give up on New World Entertainment, at least not Marvel, which New World Entertainment held.
However, Simon did not intend to make another move in the short term.
Compared to its lukewarm film division, New World Entertainment's main profitable business was television production.
However, the longest strike in Hollywood history was coming very soon. Hollywood film companies often stockpiled a large number of scripts and would not be severely impacted during the strike. However, since TV series are usually written and produced simultaneously, the television industry's situation would be very dismal.
Once the strike continued, even if funding issues could be resolved, New World Entertainment's television production department would definitely come to a standstill due to a lack of screenwriters, leading to a further deterioration of the company's operating conditions.
Therefore, the second half of the year, when the strike had progressed to a certain extent, would be the best time for Simon to make another move.