Renly's response was neither servile nor overbearing; it held the sharpness of a hidden needle within softness. With poise and subtlety, he delivered a powerful counterattack, dealing Harvey an invisible slap across the face, using Harvey's own words against him. This move was undeniably ingenious.
For reference, the North American distribution rights for "Blue Valentine" were held by The Weinstein Company, priced at $6M; "An Education" was secured by Sony Classics for $4.5M.
Of course, different films, different years, and different circumstances would naturally lead to varying prices for the final distribution rights. Yet, just moments ago, Harvey had vehemently claimed that the value of "Like Crazy" was no less than that of "Blue Valentine" and "An Education". Now, in comparison, $1.5M for the buyout of rights for "Like Crazy" sounded like a joke.
In truth, both "Blue Valentine" and "An Education" were not bought out; they were revenue-sharing arrangements. Although the share percentages were not high, the film crews could still reap more profits from the North American box office.
The reason was simple: it wasn't out of benevolence that these distribution companies acted, but rather due to the significant difficulty in turning a profit from these independent artistic films. Most film crews, upon completing a movie, ended up operating at a loss, creating a vicious cycle that led to a dwindling number of people willing to wholeheartedly engage in creating artistic cinema.
For the sake of maintaining a steady flow, distribution companies would generally be somewhat generous – a common practice within the industry.
Opting for a buyout would usually result in a higher price. This not only covered the film's costs but also left room for some profit, ensuring that the film crew could achieve a small margin of gain. This was why news occasionally broke out from Sundance or Toronto about distribution rights being sold for amounts as high as $10M or more.
Choosing a revenue-sharing model would slightly decrease the price, hovering around $5M or so. Yet, considering the relatively low costs of productions like those at Sundance, prices tended to fluctuate around $3M. Correspondingly, the distribution companies would allocate a revenue share ranging from twenty-five to forty-five percent. Whether a profit could be made depended on the film's performance at the box office.
In truth, this was a win-win situation. For distribution companies, it allowed them to reduce some risk, avoiding excessive exploitation. This was especially true for revenue-sharing models, where the price of the distribution rights remained within a reasonable range. Additionally, some of the box office burden was shifted to independent film crews. This enabled the companies to invest in more independent films and not put all their eggs in one basket.
Of course, for the independent film crews, their work was appreciated and profitable, attracting the attention of major production companies. This paved the way for their future development. Sundance was also hailed as the best launching pad for more commercially oriented directors.
The reason Harvey pressed down on the price was simply to take advantage of the relative inexperience of Drake and Renly; they were unfamiliar with the ways of the industry.
$1.5M for distribution rights was, for a Sundance independent film, a reasonable price. This was true if one didn't consider "Blue Valentine" and "An Education".
If Harvey could secure "Like Crazy" at such a price, it meant that the funds he freed up could be channeled into more projects for competition at Sundance, casting a wider net.
However, Renly was blissfully ignorant of these intricacies, and he had no interest in delving into them. Strictly speaking, he wasn't even aware of the transaction prices for "Blue Valentine" and "An Education", nor did he remember the sale price of "Buried" in Toronto last year. He was just an actor – a pure actor.
Renly's ability to make accurate judgments stemmed from Andy's reminder after receiving an invitation from the Weinstein brothers. According to this year's situation at Sundance, particularly considering the current momentum of "Like Crazy", the final transaction price for distribution rights should unquestionably not fall below $3M. The most ideal range would be between $4-4.5M.
Naturally, this was the price for a revenue-sharing agreement.
If it were a complete buyout, Andy estimated the price to be around $7M, although he begrudgingly deemed $6M as acceptable.
Therefore, when Harvey proposed a buyout price of $1.5M, Renly was simply watching the spectacle unfold.
While it was reasonable in business negotiations for Harvey to haggle over the price, he had truly pushed it to an extreme in this case. Furthermore, he exuded an air of self-assuredness, issuing orders without hesitation.
For Harvey, "Like Crazy" was just one of the countless films at Sundance – a rather ordinary piece at best, or perhaps just a pawn in this year's awards season. His attitude was not unjustified.
However, Renly knew that "Like Crazy" meant more to Drake than just a movie.
And so, the scene had unfolded just as it did earlier.
Renly's seemingly simple words concealed too many intricacies, completely disrupting Harvey's carefully laid-out chessboard.
Harvey was a clever person, a top-tier one at that, but the greatest weakness of clever people lay in their tendency to complicate simple matters and delve deep into surface-level affairs. As Harvey's gaze once again fell upon Renly, his eyes took on a profound quality. He had underestimated Renly; this young man of merely twenty-one years old was evidently not as straightforward as he seemed.
"So, what's the number you have in mind?" Harvey's brief fluster was only momentary; between breaths, he regained his composure and smiled, as if willingly relinquishing control.
Drake felt his thought process lagging behind, staring at Harvey in bewilderment: What did that mean? Were they just throwing out numbers? What if they proposed $10M – would Harvey flip out?
Yet, Renly's response left Drake even more astounded, "$1.5M is quite reasonable."
This... what kind of answer was this? Drake shot Renly a puzzled look. If they were satisfied with $1.5M, they could have simply agreed when Harvey mentioned it earlier. What was the point of this subsequent exchange? If they were dissatisfied, Renly reiterated the same figure – what did that signify?
A slap in the face?
Harvey's cheeks did indeed feel a burning sensation, not from Renly's retort but from his own underestimation of him. He had prompted Renly to name a price, effectively testing his bottom line. However, Renly refused to play along, straightforwardly stating $1.5M. Now, he found himself awkwardly pushed into a passive position.
If he said $1.5M now, it would be tantamount to a self-inflicted slap. After all, the distribution rights for "Blue Valentine" were worth $6M. If he stated a number too high, he'd expose his hand; too low, he'd be caught in the awkward position of haggling at a flea market.
Renly's seemingly casual move was not only brimming with sarcasm but also pushed Harvey into a defensive position. This guy was... quite impolite.
"I thought you were just an actor, but now it seems your comedic talents aren't lacking either – you speak so wittily and humorously." Who was Harvey? A bigwig who could change the tide with a wave of his hand. How could he be flustered? He had only been caught off guard momentarily by Renly's move, but soon regained his composure. He just needed to adjust his assessment of Renly.
"$4.5M, a fixed price for a complete buyout." Harvey made a calculation in his mind, offering this price. It demonstrated his sincerity and maximized his interests as much as possible.
Of course, more importantly, it created a new bombshell, tripling the price in one go. Such an impact was unparalleled.
It was akin to an auction where bids were gradually increasing in increments of $10,000, and suddenly someone raised the bid by $2M. This was enough to make others back down. Even if the real value of the auctioned item was $5M, this kind of bold bidding was likely to result in a final price much lower than $5M.
Drake was now utterly dumbfounded. $4.5M – the price had caused his mental gears to halt. Such a transaction price was extremely rare even at past Sundance film festivals. Yet, here it was, right before his eyes, as if gold bricks had fallen from the sky, leaving him dizzy.
Facing Harvey's bold move, Renly displayed his decisiveness, "Mr. Weinstein, I believed today's meeting was filled with sincerity. However, evidently, you view "Like Crazy" as a disposable investment, much like casting a wide net for fish – this fish seems somewhat plump, so you reel it in to take a look first."
Renly disliked these types of situations, where people continually calculated for minor gains. Since Harvey had demonstrated his supposed sincerity, Renly had no qualms about being forthright.
With a genuine smile, Renly said, "How about this? Let's both go back and think it over. You can consider whether this fish deserves more investment, and we'll think about whether we want to board this fishing boat."
Harvey earnestly scrutinized Renly. This was the first time since their encounter today that he attempted to capture a glint of wisdom and sharpness in Renly's eyes. Yet, he failed. He, astonishingly, failed!
The Renly before him appeared so composed and unruffled. His seemingly casual words bore no edge, not a trace of fluctuation. It was as though he was merely discussing today's weather. This poise, calmness, and confidence, even more terrifying than intelligence itself, defied his age.
Harvey couldn't believe he had truly misjudged him. Upon reflection, Renly's first two sentences at the start were clearly not coincidental – they were pointed. In this clash, Renly had been thoroughly prepared, while he remained in the dark about this newcomer, leading to his disadvantage.
Truly, it was too rare – far too rare.
"Well, what? Are you dissatisfied with this number?" Harvey genuinely started to take an interest in the actor named Renly and repeated the same question for the second time.
"Heh." Renly chuckled softly, a glint flickering in his deep brown eyes. "No, I'm not satisfied." This direct response successfully raised Harvey's eyebrow, who then broke into a smile. Renly continued, "Because I don't believe "Like Crazy" is just another "An Education"."
Harvey, however, nodded nonchalantly, chuckling, "Perhaps it really isn't."
What did that sentence mean? Was it implying... splitting?