[Chapter 115: Deal Reached for 3 Film Collaborations]
Hearing Linton's words, Lou Wasserman and Levitt's eyes lit up. They had already heard that Linton Studios was planning films for Step Up 2 and Speed, and had long wanted to negotiate specific collaborations with Linton.
Unexpectedly, there were three films in the mix, including The Shallows. Once they realized The Shallows was a small comrcial production with just a $6 million investnt, they paid it little mind, focusing instead on Step Up 2 and Speed.
"How about we discuss film collaboration matters here while the others find another place to negotiate the overseas full rights deal for Step Up?" Linton proposed, seeing their attention fixed on the new film projects.
For overseas revenue settlents, both parties had long intended to use a full rights transaction. However, specific pricing negotiations naturally wouldn't have Linton, Lou Wasserman, and Levitt directly involved -- it would be left to their teams initially.
That way, even if negotiations got heated or contentious, it wouldn't affect the strong relationship among their top executives, who would only handle the final decisions.
So, Linton and Robert stayed in Lou Wasserman's office to discuss the new film collaborations with Lou Wasserman and Levitt.
The others, alongside Universal's negotiation team, found another conference room to negotiate the overseas full rights deal for Step Up.
...
Lou Wasserman and Levitt both showed strong interest in the Step Up 2 and Speed projects, expressing hope to participate not only in distribution but also in investnt and production.
Lou Wasserman even called Roman Garrett, director of production at Universal Pictures, to join the negotiations.
Step Up 2 was a sequel to a blockbuster hit with a modest investnt, sure to bring in big profits. Naturally, Linton was reluctant to give up any investnt shares.
But for the Speed project, Linton was open to introducing Universal's investnt, with the clear condition that control of the project remained firmly in his hands, and at most 40% of investnt shares would be ceded.
After lengthy and friendly discussions, both sides reached a preliminary agreent on the three film projects.
...
Step Up 2 would be distributed by Universal Pictures, with distribution fees as follows:
- 20% cut on North Arican box office inco
- 25% cut on overseas box office inco
- 20% cut on all videocassette and TV rights inco
- 50% cut on all movie rchandising inco
The tentative release window was set for August, with specific dates to be finalized once the film was completed. Universal committed at least $10 million to promotion and guaranteed opening in no fewer than 2,500 theaters.
Additionally, Universal would assign a producer to serve as assistant production manager on set. Universal would also provide studio space at Universal Studios for filming. Of course, Linton Studios would pay standard market rates for salaries and rental fees.
...
The Speed project involved a $35 million investnt, including $1 million for the screenplay, $2 million for the director, $5 million for the lead actor, and a total of $8 million for Linton's personal acting fee, with no backend profit participation.
Neither Lou Wasserman, Levitt, nor Roman objected to Linton's acting fee -- given his status, it was a reasonable market price. Their greater concern was the investnt share, hoping Universal would hold 50%.
However, Linton remained firm on the 40% maximum share, ensuring he retained control. Eventually, both parties agreed.
Thus, Speed would be a collaboration between Linton Studios and Universal, with Linton Studios investing 60% and Universal 40%.
Linton Studios would hold production control. After theatrical release, it could first draw 10% of the total inco as production managent fees, with remaining revenues shared according to investnt percentages. Both parties would share the film rights proportionally.
The 40% investnt from Universal was rely tentative, pending review by Universal's project audit committee. All film investnts required approval from this committee, followed by majority endorsent before presentation to the board of directors. Only after board approval could the project officially begin.
Lou Wasserman, Levitt, and Roman were confident they could convince both the audit committee and board for Speed, but the process had to be followed.
Distribution terms for Speed matched those for Step Up 2. Considering Universal had Jurassic Park in June and Step Up 2 in August, Lou Wasserman and Levitt suggested a July release for Speed to avoid conflicts. Linton agreed to the July date.
...
The Shallows was treated as an added bonus -- a small budget comrcial film. It naturally didn't receive distribution terms like Step Up 2. Both parties didn't fuss over it, roughly agreeing on terms similar to Step Up's.
Universal would distribute The Shallows with fees as follows:
- 25% cut on North Arican box office
- 30% cut on overseas box office
- 20% cut on videocassette and TV rights
- 50% cut on rchandising
Tentative release was set for April, with specifics to be finalized when the film was completed.
After the film was finished, Universal would organize evaluations by film experts and conduct test screenings with randomly invited audiences.
If the film passed expert evaluation and earned an overall B rating or above from audiences, Universal promised no less than $2 million in promotional spending and at least 1,500 opening theaters. Otherwise, both promotion and theater counts would be halved.
Universal would also assign a producer to the set as assistant production manager and provide studio space at Universal Studios, with Linton Studios paying market-rate fees.
...
With cooperation on the three films settled, it was already late afternoon. Lou Wasserman promised to push Universal's approval process for Speed quickly. Once approved, all three films would have formal cooperation agreents signed simultaneously.
...
However, negotiations over the overseas full rights for Step Up weren't progressing as smoothly. The two sides had significant disagreents and so friction over the final price.
Linton, Lou Wasserman, and Levitt preferred not to personally get involved, instead authorizing their teams to handle talks, confident that a mutually acceptable agreent would eventually be reached.
...
Universal Pictures' finance departnt, as efficient as Universal Music, handled paperwork swiftly. By Monday, the contracts were signed; by Tuesday, $67 million had been transferred to Linton Studios' account.
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Given The Shallows was scheduled to release next April and it was already mid-October, and although filming would be relatively simple, the schedule was tight. Linton instructed Blake and Zack to speed preparations, requiring shooting to start by early December at the latest.
...
In the following days, Robert, Henry, Mary, and Goodman ford a negotiation team to continue talks with Universal on the overseas full rights for Step Up.
anwhile, Linton stayed ho storyboarding sequences for Speed. That afternoon, Caron Diaz called -- she had just wrapped filming her TV show White Collar for the evening in New York and would be returning to Los Angeles the next day, asking if Linton was ho.
At the beginning of the year, Caron had shot the movie August Love and finished by late June. Since Linton was busy stirring rumors with Naomi Watts then, he hadn't t with her, making Caron a bit resentful for several days.
Later, she accepted the lead role in White Collar, just finished filming, and was eager to et Linton.
Linton realized it had been six months since they last t and felt nostalgic for her charm, so he gladly agreed over the phone.
Since The Shallows was already in preparation, it was ti to give her the script to start familiarizing herself and preparing for the lead role.
*****
spatreon/Sayonara816.
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