Next, everyone’s eyes in the venue turned to Gu Bai.
Gu Bai thought for a few minutes and did not directly announce how much to invest. He looked towards Yang Function at the main seat.
"President Yang, may I ask, is the profit-sharing calculated based on the investnt ratio?"
Yang Function was taken aback. He didn’t expect that even though the investnt wasn’t finalized yet, Gu Bai would bring up profit-sharing. Nonetheless, he explained.
"20% of the profit is allocated to the producers and distributors, and the remaining 80% is divided based on the investnt ratio."
With this explanation, Gu Bai understood.
The producers of Fuyao are Yang Function and Lemon Film and Television, and the distributor is E Factory Film and Television. This ans these three entities, besides their investnt shares, also enjoy a 20% profit share.
However, there’s no other way. With only money and no distribution channels, what can I do?
"I think the investnt is too small, and the profit ratio doesn’t satisfy ."
As Gu Bai spoke, everyone couldn’t help but look at him.
Raising objections is normal; no one expects this investnt negotiation to go smoothly. When it cos to interests, anyone will scrutinize the details.
"If President Gu has any opinions, feel free to raise them. After all, this investnt bidding is a negotiation, and any issues should be resolved together."
Chen Wu said with a smile.
He could hear that Gu Bai was dissatisfied with the returns.
"I have a suggestion. Please hear out. If you disagree, just pretend I didn’t say anything."
"Please go ahead, President Gu."
Chen Wu, Yang Xiaopei, and Yang Function all focused their attention on Gu Bai.
"I suggest increasing the total investnt to 800 million. Black Swan Capital will invest 400 million, taking up half of the total investnt. As for the producer and distributor profit share, it should be reduced to 10%. What do you all think?"
As soon as he said this,
Chen Wu imdiately opposed, "That’s impossible!"
Gu Bai’s suggestion was to directly cut E Factory Film and Television’s cake in half; there’s no way he could agree to that.
"President Gu, you might not understand the situation of film and television investnts. Producers and distributors not only bear the project production investnt costs but are also responsible for post-production distribution and promotion. The 20% profit share is like a resource share; it’s a basic rule of the industry.
Moreover, there are very few projects in the current market with investnts exceeding 300 million. A 500 million investnt is already considered very large. Adding more would likely make it hard to generate profit."
Yang Xiaopei kindly explained to Gu Bai.
"President Yang, I understand these issues. But how about hearing out first?"
Seeing no one spoke, Gu Bai continued.
"Firstly, regarding the distribution capital President Yang ntioned, I understand that, so I propose a 10% additional share. This is equivalent to the 20% of a 500 million investnt, which isn’t much different.
Secondly, although I believe in Sister Mi’s influence, no matter how badly this project does, it won’t flop that much. But any investnt bears the risk of project failure; I believe this can’t be denied? The more you invest, the higher the risk you bear. As for profit sharing, that’s another topic.
Most importantly, the third point: once the project’s capital is increased to 800 million, I believe the project will surely have a qualitative change. After all, there’s currently no TV series in the country with an 800 million production cost. This itself is a great selling point. With a little hype, the project could beco popular even before airing."
After Gu Bai’s speech, the major investors bowed their heads in thought.
The minor investors, however, showed an indifferent expression. Regardless of the outco, they would get their share. There’s no need for them to face these giants head-on; eavesdropping is enough and they will side with whoever is strong.
This is also the survival strategy of the small players.
After thinking for a while, Chen Wu still shook his head and refused.
"President Gu makes a valid point, but truly speaking of investnt, even a 1 billion investnt could be easily made by our Tencent. But doing so would directly break market rules and attract targeting!
As for the additional investnt, I think we should set it aside first and finalize the 500 million investnt share, then discuss internally."
His aning was simple: the main investors haven’t been confird yet, so discussing additional investnt is clearly too soon. Not to ntion competing for a slice of their Tencent cake, which he certainly wouldn’t agree to, despite agreeing internally with Gu Bai’s final statent.
Yang Xiaopei and Yang Function imdiately agreed.
Seeing these giants were about to finish their discussions, minor investors were waiting for Gu Bai’s final speech.
Gu Bai made his usual thoughtful gesture, tapping the table with his fingertips.
"How about this, I can sign a bet-on agreent with the project investors."
"A bet-on agreent?"
Chen Wu and the others looked at Gu Bai with puzzled expressions.
Many projects in the entertainnt industry would have bet-on agreents, but they are only made under extrely favorable conditions. Gu Bai, does he really have such confidence in the Fuyao project?
"On behalf of Black Swan Capital, I will invest 400 million RMB with the total project cost being 800 million.
If the future inco of the project exceeds 1.5 billion, Black Swan Capital’s profit share will be 50%, and the producers and distributors’ share will be reduced to a 10% additional share.
If it doesn’t reach 1.5 billion, Black Swan Capital’s 400 million RMB investnt will only occupy a 30% profit share of the project, and the producers and distributors’ additional share will still be 20%.
What do you all think?"
After Gu Bai finished speaking, everyone started discussing.
Even Yang Function didn’t dare to sign such a bet-on agreent. Where did Gu Bai get such confidence to propose such a seemingly unfavorable agreent?
They certainly didn’t know that Gu Bai is a reborn person.
In the previous life, when the Fuyao project was released, Mango TV offered 500 million for the premiere rights but was directly rejected, later being sold to Blueberry Channel for a high price of 800 million.
This was not even counting the inco from various online platforms.
It can be said that reaching a 1.5 billion inco is well within reach, which is why Gu Bai can confidently make a bet-on proposal.
"If it’s such a bet-on agreent, I don’t think any investor would refuse. But I’m curious, President Gu, why are you so confident that this project will succeed?"
Hearing this, Gu Bai smiled calmly and said lightly, "Being optimistic about the project is just one aspect."
"Oh? Does President Gu have other reasons?"
"This might make you laugh. This ti, making money through investnt is secondary for . Actually, I aim to disrupt the scene."
Though he jokingly said this, he truly intended it.
Black Swan Capital has just started. Without a few groundbreaking moves, it might take forever to catch up with these industry giants. What he’s doing now is breaking industry rules and unreasonably declaring Black Swan Capital’s entry!
This is just a small move. Gu Bai had long planned how to muddy the waters of the entertainnt industry, gradually transforming from a small fish to a giant crocodile in this murky water!
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