Chapter 315 Long-Term Credit Bank

The plane arrived in the island country smoothly. Ronan and his party got off the plane, walked out of Tokyo International Airport, and saw Harmont, the person in charge of the embassy film industry in the island country who came to welcome them.

The middle-aged man in his forties from Washington, D.C. was affiliated with Polygram Films until 1999, where he was in charge of its Japanese film business, before Alan Albert and Danny Donald joined Embassy Pictures. Later, he also transferred to the embassy film company and continued to serve as the person in charge of the island branch.

Harmont has been in the island country for nearly ten years, and he can be called an expert in the island country. He also provided the list of the island country's intended investment customers, and then made preliminary contacts.

But he can only play the role of a middleman, and the specific matters need to be discussed by the Cinéfondation.

When the group arrived at the Peninsula Hotel in Tokyo, Ronan did not make any adjustments and rested, and immediately asked Harmont to report the situation of the island country in person. Although the two had been in close contact by phone, it was more clear and convenient to talk about some things in person.

In addition, Scott and other staff also need to know first-hand information.

Everyone gathered in the conference room of the presidential suite where Ronan stayed. Harmont had someone bring in two thick stacks of documents, and Ronan asked Connie to help Harmont distribute them to everyone involved in the meeting.

This information about potential partners was collected by the embassy film office in the island country, and carefully compiled by Harmont.

Ronan flipped through the information and said, "Harmont, please introduce the specific situation first."

Standing at the long conference table, Harmont said: "At the beginning, we had a list of five potential clients. They not only had a strong interest in investing in the United States, but also invested in They were all more than three times. But after more than three months of contact and screening, four of them want to invest in the financial or securities market, and only one really wants to invest in Hollywood."

Ronan nodded lightly. The island nation invested a huge amount in North America, even involving all civilian industries. Even the Chrysler Building was bought by the island nation. It is conceivable that the island nation is interested in investing in the United States.

But there are many industries in the United States, and Hollywood is just one of the options.

Harmont's introduction continued: "The real interest in Hollywood's film funding is the long-term credit bank of the island nation."

Having said that, he came to the back of the projector, turned on the projector, pointed to the picture and text introduction of a company on the white screen with a laser pointer, and said: "This credit bank was established in 1952. It inherited Quanye Bank and Hokkaido Bank. The long-term credit business of the Colony Bank was formed.

The main source of funds is to absorb deposits and issue interest-paying financial bonds. At the beginning of the business, it mainly provided long-term loans to industries such as electric power, machinery, steel, and chemicals. From the 1970s, it gradually expanded its investment business. Since the 1980s, its investment business has entered a stage of rapid development. The scope of investment involves more than ten countries and regions around the world, including finance, securities, insurance, funds and many other aspects. "

After reading the projected text, Scott asked, "What is the strength of this institution?"

If you can only invest a few million dollars, it will be very disappointing.

Harmont replied: "The investment of hundreds of millions of dollars, they have more than ten deals every year, and even more interest-bearing loans."

Scott nodded. The potential partner has quite good financial strength, and he asked again: "Have they cooperated with American foundations?"

"Not only have we cooperated with foundations in the United States, but we have also had direct contact with Hollywood." Harmont explained in detail: "The Long-term Credit Bank invested in the special investment fund for screen film and television launched in 1983, and provided 82 million for the second phase of the fund. US dollar investment, at that time the second phase of the Silver Screen Foundation mainly raised funds for Disney Pictures.”

He added: "In 1987, the Silver Screen Foundation launched the third special film investment fund, and the investment object was still Disney. The Long-term Credit Bank raised 93 million US dollars to participate in the third fund investment."

Scott continued: "Since we have invested in Hollywood, we have a certain basis for cooperation, and it will be easier for us to talk."

Harmont looked serious, and explained: "These two investments, Long-Term Credit Bank did not achieve the expected returns. Back then when Silver Screen invested in Disney, Disney adopted a method in which the investor directly shared the proceeds from the movie profits. Long-term Credit Bank These two investments are just making a profit."

Scott looked at Ronan, and Ronan understood what he meant, and said simply: "Hollywood has independent and systematic financial calculation rules. As far as the rules allow, even if it is a big-selling movie, sometimes the net profit is not enough. high."

"That's a disadvantage." Scott jotted down in his notebook.

Harmont said at this time: "According to my observation, the long-term credit bank's investment intentions are quite strong, but the previous cooperation with Hollywood is what they have the most concerns about."

Ronan had already responded to this, saying: "We will provide a more secure way to benefit."

When he was in Los Angeles, Ronan specifically studied the cooperation between the Island National Long-term Credit Bank and the Silver Screen Special Film and Television Investment Fund in that year.

Yinping’s film and television special investment fund has launched four phases, and Yinping Management Company is responsible for the management and operation. Bush Jr. was a member of the board of directors of the fund management company for ten years from 1983 to 1993.

This fund was originally prepared in 1982 by New York film investor Roland Bates to finance HBO film projects.

Started in 1983, the first phase is about 75 million US dollars, mainly invested in movies broadcast on TV platforms.

From the second phase in 1985, under the fight of Michael Eisner, the head of Disney at the time, Silver Screen began to raise funds for Disney. The second phase of Silver Screen’s fund of 195 million US dollars was all invested in Disney’s film projects. In 1987 The third phase of the investment object is still Disney, the amount is as high as 300 million US dollars.

These funds were mainly used to support Disney's film production at that time, especially the project investment of live-action films.

In the 1980s, the island country’s economy developed rapidly, and it seemed unprecedentedly prosperous. It was said that the land price of a place in Tokyo could buy the whole of the United States, and the hot money from the island country was raging all over the world.

In the late 1980s and early 1990s, Hollywood was a treasure land for island country investors to realize their dreams, which is highly similar to the nature of the rapid influx of capital from indescribable countries into the United States.

Many fund providers and managers seem to be on a pilgrimage, hoping to learn Hollywood's market experience with the help of investment relationships.

Therefore, the low interest rate in the island country and the halo of Hollywood have made the hot money of the island country flow into Hollywood quickly, and the islanders have little demand for returns on the Disney movies they participate in, as long as they are allowed to invest.

However, the early stage operation of the Silver Screen Foundation was a "failure".

The first phase of Silver Screen was off to a bad start, with a loss of 30%. According to the fund's management plan, the first phase of the fund invested in a batch of low- and medium-budget films, and 50% of the income The exclusive TV broadcast copyright fee will come from HBO, and another 40% return will be provided by a British company from overseas distribution, overseas TV and overseas home theater markets.

The rest comes from the domestic home theater market in the United States, which seems to be particularly "guaranteed" in terms of revenue channels.

However, the failure of this phase of the fund was not due to the relationship between recycling channels, but because the time required for the release was far beyond the plan, and the rate of return was seriously affected.

Investors paid in 1983, and the films covered did not release until the spring of 1986. It took 1991 to recover all the proceeds. It took a total of eight years, which made the use of funds far exceed the return. .

The situation in the next three phases was better, but the return on investment was actually not high. This also caused the Yinping Foundation to turn to other industries after raising four phases of film and television special funds.

Because the return was not as expected, and the economic bubble burst in the late 1980s, the island country long-term credit bank did not invest in American films or special funds related to Hollywood after that.

If you want people to spend money to invest, you must let people see the prospect of profit.

The islanders are not the country of the United Arab Emirates, where local tyrants cannot even make movies. There is an extremely developed entertainment and cultural industry here, as well as businessmen and professional managers who are savvy enough to fool the local tyrants in Abu Dhabi and use them in the island country. It's really a joke.

Therefore, ever since Ronan came up with the idea of ​​this Eastern financing plan, he never thought about playing tricks that are not on the table.

All the plans he formulated must rely on hard power and real capital to speak, and let investors see the possibility of stable returns.

Yinping's method of sharing revenue based on movie profits is just a plan. Ronan feels that it may not be easy to use for islanders, especially long-term credit banks, so he has prepared another stable income plan.

Like in the 1980s, for many island country investors, many industries in the United States are as long as investment is allowed, and money is not a problem.

But now, unlike that era, the fanatical islanders are more practical.

The meeting discussed for a while, and Ronan asked at this time: "Harmont, you have been in contact with the island country for a long time, have they made any requests?"

"Not in this regard." Harmont thought about it carefully for a moment, and then said: "By the way, I heard one of their vice presidents in charge of investment business privately say that the success rate of Hollywood A-type movies is higher now. The influence is also greater.”

Ronan smiled: "Class A movies, that is, first-line production." He lightly tapped the armrest of the chair, passing through many thoughts in his mind, and said, "Other Hollywood companies may not allow future funds to be easily invested. First-line production, but we don’t have this problem.”

Harmont looked at Ronan, and Ronan said unhurriedly: "You go to contact the island country and arrange a meeting between the two parties."

After Harmont responded, the meeting continued, and discussions on possible situations and coping strategies based on the information were started.