Chapter 317： fixed income

Under the bright lights, Ronan sat in the reception room of the Long-term Credit Bank, his eyes inadvertently swept over the short islander.

This is Takuya Matsubara, the vice president of Long-term Credit Bank in charge of investment business.

After the two parties have done basic understanding and testing, they quickly turned to the topic. Matsubara Taku also directly asked: "Mr. Anderson, the Pacific Film Foundation and Shahai Entertainment have signed five film investment agreements. Film production experience, I have no doubt that these films have a high chance of success, but according to my understanding, all the people of Shahai Entertainment and Pacific Film Foundation are you, right?"

This Matsubara Taku also speaks fluent English and does not have a particularly heavy island accent. It is not a problem to communicate directly with guests from the United States.

"Yes, the Pacific Film Foundation was originally established by me." Ronan couldn't make mistakes on this simple question, and said: "My purpose of establishing this foundation is to raise funds for the film project of Shahai Entertainment. Since the great success of "The Bourne", my production company has formulated more shooting plans, including some of the first-line A-class productions."

He smiled and said: "Of course, this can also provide a win-win investment opportunity for funds outside of Hollywood."

Matsubara Taku was unmoved, and said, "Mr. Anderson, you are both Party A and Party B."

Ronan said calmly: "You have invested in the silver screen special film fund. You should know that Hollywood is full of traps. The fund invests in my own film projects, which is more controllable and less risky. This is also responsible to the investors. ."

Matsubara Taku also issued another question: "But this is not good for investors! In fact, long-term credit banks have never lacked investment opportunities. Take the film industry as an example, our investment in local companies is more secure."

Such remarks are obviously paving the way for the future conditions. Ronan understands naturally and smiles faintly and said: "With your scale, the investment income and security in the United States are the best."

Matsubara Taku also did not speak, as if he did not approve of Ronan's words.

Ronan further said: “Since the late 1980s and early 1990s, the island country’s economic environment has deteriorated rapidly and has not yet recovered. Almost all of your country’s large investment institutions are dominated by overseas investment. The island country’s economic growth has been slow and the resources are relatively low. Scarcity, labor costs are getting heavier, and your domestic investment risks are higher."

His speech was not fast and his voice was very clear: "For you, the huge American market is full of investment opportunities. All walks of life are profitable, and Hollywood is one of them."

"The film industry is at great risk." Matsubara Takuya said slowly.

Ronan knows very well that the two parties can sit here and talk, and the long-term credit bank already has a certain investment interest.

"Yes, the film industry is extremely risky." Ronan has never denied this: "Film investment has high-risk characteristics, it is difficult to control the probability of success, and can only pin his hopes on reducing errors as much as possible. Even so. The return on investment in movie projects is also limited. Behind every dark horse-level movie, there are a bunch of bony white horses and princes buried."

Matsubara Taku also looked serious: "In this case, once the long-term credit bank cooperates with you, how can the investment income be guaranteed?" He said as a reminder: "We have invested in the silver screen special film fund, and there are enough lessons in this regard."

Hearing this, Ronan was not surprised. After all, the island country is also a country with an extremely developed film and television entertainment industry.

Moreover, before coming to the island country, he was prepared, and he would never treat the islanders with the same set of dealing with Arabs and Indians.

To achieve rapid development of the company, the power of foreign capital is indispensable. However, when dealing with investors in different countries and regions, different strategies must be used to meet the actual conditions of investors.

Ronan has formulated a plan for a long time and has conducted inspections and demonstrations. At this time, he said: "The Pacific Film Foundation uses high-yield bonds to raise funds in installments from the long-term credit bank. This is a business cooperation between the foundation and the long-term credit bank. , Independent of the existence of Shahai Entertainment's movie project, the bond has solidified and stable income."

Matsubara also touched his chin: "The financing that exists independently of the film project."

Ronan further explained: "This is one of the investment methods of Hollywood movies. Regardless of whether the Pacific Foundation invests in Shahai Entertainment's movies, the long-term credit bank will obtain stable income."

Songyuan Taku also immediately realized that if such a cooperation method can be reached, the investment risk of long-term credit banks will be minimized.

"What about the rate of return?" Matsubara Taku also asked directly.

Ronan did not hesitate, and replied: "10%. Many film foundations in the United States invest in Hollywood films, and a return rate of 10% is considered a high level of profitability. The silver screen special project that the long-term credit bank had cooperated in that year Film and television funds, a total of four phases of funds raised, invested in dozens of films, and the most profitable film is only 11%."

Matsubara Taku also participated in the cooperation with Yinping Fund that year and knew that Ronan was telling the truth.

The long-term credit bank initially invested two consecutive periods, and the overall yield rate was not even 5%.

Matsubara Taku also thought in his head, but he said completely different: "The rate of return on investment is too low."

Seeing him say this, Ronan's heart moved, which also means that Matsubara Takuya's attitude is rapidly tilting toward cooperation with the foundation.

Bargaining is actually not a bad thing for business cooperation.

Only if you want to cooperate, you will bargain.

If you don’t even mean to cooperate, do you need to bargain?

Ten percent is indeed not high, but island countries implement low interest rates. The normal annual interest rate of commercial loans varies from 0.9% to 3.5% according to their own circumstances. Most of them are Around two percent.

Compared with other countries, the loan interest is low.

Ronan made sufficient preparations and said, "Mr. Matsubara, this rate of return is very high compared to your country's loan interest rate."

Songyuan Takuya would be easily moved, saying: "A Hollywood movie, from project investment to recovery of funds, takes several years. Take the first phase of the Silver Screen Foundation's fundraising in 1983. Funds were paid every year, and the last film of the covered films was not released until the spring of 1986. It took 1991 to recover all the proceeds. A total of eight years, which made the cost of using funds far exceed the return."

Ronan knows very well that Matsubara Taku also said that it is very realistic. It takes seven or eight years for a film investment to recover its income. It seems that it has produced a profit, but what about the time cost? There are also currency depreciation, interest loss and so on with time.

"Three years!" Ronan said confidently: "Our cooperation can be carried out in stages. For example, in the first phase, you will invest 100 million or 200 million U.S. dollars. The return of the funds and the income account period will be three years. In the third year of signing the contract, the Pacific Fund will pay off all your investments in one lump sum with principal and interest, which can reduce the time cost to a minimum."

After several years of operation, Ronan is confident to do this.

How much he can make the film avoid some detours, shorten the operation process appropriately, let a film be completed in two years from preparation to release, and the remaining year is used to recover funds, as long as the film market responds well, even if not The box office boom is enough to return the investors' funds.

And such a film can make long-term profits.

There are certain risks in doing so, but in any business operation, opportunities and risks coexist.

Moreover, according to the current situation of relativity entertainment, if you want to develop further, it is necessary to introduce capital to support. Ronan needs to unify the company’s voice at this stage to avoid some risks brought by the six major companies in the next few years. Investing in capital expansion or absorbing Wall Street’s capital has no choice but to find ways to attract overseas funds that have little interference with Relativity Entertainment.

Hollywood is ubiquitously imprinted with traces of capital operation. If Hollywood's continuous creative ability is compared to the bloodline on which it depends, then capital is the bone that supports the global marketing of Hollywood products.

Well-known companies such as Legendary Pictures, Relativity Media, and Dune Entertainment, which are familiar in the film and television industry in the past, actually have financial industry genes. The Hollywood film and television industry has also formed a diversified investment and financing model with multiple investment and financing channels and multiple investment and financing models. .

This also ensures that Hollywood films have sufficient funding sources.

For example, in the famous "Avatar", the 20th Century Fox itself invested limited funds. Two film and television investment companies, Dune Entertainment in the United States and Jingzhong Media in the United Kingdom, jointly contributed 60% of the production cost and publicity expenses for the film.

Songyuan Taku also seriously considered that such a yield is more cost-effective than commercial loans.

Ronan added: “If you invest in other industries ~ www.novelhall.com~, the rate of return can reach this high is not much, and you will also face the risk of investment failure. In the past two years, the US economic situation has not been stable and the social situation It’s not very good either, accidents happen frequently in the socio-economic field..."

Matsubara Taku also immediately thought of the Nasdaq crash and the 9/11 incident, and frowned slightly.

The risk of investing in traditional industries is relatively minimal, but the rate of return on investment in traditional industries...not to mention it.

Matsubara Taku would not let it go easily, and once again said: "The return on investment of 10% is too low."

"We can continue to talk." Ronan said calmly, "I believe we can reach a consensus on this cooperation."

Matsubara Taku also said seriously: "I also hope to reach a consensus on this cooperation."

This meeting is only to lay the foundation for future negotiations. Ronan and Matsubara Taku also have preliminary cooperation intentions. The following specific negotiations can be handed over to the people below.

For investment cooperation involving hundreds of millions of dollars, both parties cannot be overly cautious.