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 investment ratio?"
Yang Function was taken aback. He didn’t expect that even though the investment 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 investment 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 means these three entities, besides their investment 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 investment is too small, and the profit ratio doesn’t satisfy me."
As Gu Bai spoke, everyone couldn’t help but look at him.
Raising objections is normal; no one expects this investment negotiation to go smoothly. When it comes to interests, anyone will scrutinize the details.
"If President Gu has any opinions, feel free to raise them. After all, this investment 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 me 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 investment to 800 million. Black Swan Capital will invest 400 million, taking up half of the total investment. 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, ᴛʜɪs ᴄʜᴀᴘᴛᴇʀ ɪs ᴜᴘᴅᴀᴛᴇ ʙʏ 𝖓𝖔𝖛𝖊𝖑~𝖋𝖎𝖗𝖾~𝖓𝖊𝖙
Chen Wu immediately 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 investments. Producers and distributors not only bear the project production investment 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 investments exceeding 300 million. A 500 million investment 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 me out first?"
Seeing no one spoke, Gu Bai continued.
"Firstly, regarding the distribution capital President Yang mentioned, I understand that, so I propose a 10% additional share. This is equivalent to the 20% of a 500 million investment, 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 investment 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 become 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 outcome, 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 investment, even a 1 billion investment could be easily made by our Tencent. But doing so would directly break market rules and attract targeting!
As for the additional investment, I think we should set it aside first and finalize the 500 million investment share, then discuss internally."
His meaning was simple: the main investors haven’t been confirmed yet, so discussing additional investment is clearly too soon. Not to mention competing for a slice of their Tencent cake, which he certainly wouldn’t agree to, despite agreeing internally with Gu Bai’s final statement.
Yang Xiaopei and Yang Function immediately 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 agreement with the project investors."
"A bet-on agreement?"
Chen Wu and the others looked at Gu Bai with puzzled expressions.
Many projects in the entertainment industry would have bet-on agreements, but they are only made under extremely 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 income 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 investment 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 agreement. Where did Gu Bai get such confidence to propose such a seemingly unfavorable agreement?
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 income from various online platforms.
It can be said that reaching a 1.5 billion income is well within reach, which is why Gu Bai can confidently make a bet-on proposal.
"If it’s such a bet-on agreement, 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 time, making money through investment is secondary for me. 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 entertainment industry, gradually transforming from a small fish to a giant crocodile in this murky water!