"You went to Germany and came back with $4.5 million."
In Seashore Entertainment's office, Robert repeatedly praised, "Michael, how did you develop such strong financing skills?"
Before "The Purge" was released, Seashore Entertainment would have taken years to earn that $4.5 million.
Michael remained calm and said, "The opportunity was always there. I just researched some cases and found a loophole in Germany that could be exploited."
Apart from this $4.5 million, he still owed Koch Films $10 million, so this trip to Germany effectively raised $14.5 million.
Michael wouldn't default on his payment. Once "Final Destination" was settled, he would return the $10 million to Koch Films.
Mary interjected, "See, I told you two that reading more books wouldn't hurt, right?"
George Clint laughed, "I'm good at publicity and media relations. I can handle acquisitions, but financing is a bit out of my league."
The office atmosphere was very relaxed. After Michael returned to Los Angeles, he immediately distributed rewards for the Abu Dhabi trip, giving each person, including himself, a 1% cash reward amounting to $400,000.
Michael clapped his hands to get everyone's attention and started discussing business, "Mary, the $4.5 million tax rebate is a legitimate income Seashore Entertainment received from Koch Films, so it doesn't need to be included in the two film projects' revenue."
Mary nodded lightly, "Got it. I know what to do."
George Clint praised, "This is a reasonable and legitimate company income."
Michael regretted, "The UK's tax rebate quota was divided last year. Otherwise, I could have gone to the UK as well."
The UK's tax rebate policy isn't stringent either. It meets the application criteria as long as some scenes are shot in the UK and key crew members are British. However, compared to Germany, the cooperation between the UK and the US is closer, and the annual tax rebate quota is usually decided months in advance.
Robert chuckled, "This $4.5 million is already an unexpected surprise you've brought us."
After discussing global film tax rebates, Michael asked, "How are the two film projects progressing?"
"'Final Destination' has been in the initial planning stages," Robert replied. "James Wong has submitted detailed shooting plans, scene plans, and storyboards, which I've placed in your file cabinet."
He continued, "As for the crew, James Wong wants to use as many people from 'The Purge' as possible. I'm in contact with them."
Michael nodded, "That's good. It's better to have a foundation of cooperation. You can handle the negotiations with these personnel."
Robert added, "James Wong's agent, Edward, has called several times asking for a pay raise for James. He believes that given the success of 'The Purge,' $300,000 doesn't match James Wong's value."
At the time of signing the contract, James Wong had to lower his conditions to secure Michael's financial support, but the success of "The Purge" has undoubtedly raised his market value.
Michael wasn't rigid, "I'll find some time to talk to Edward."
A reasonable pay raise was acceptable, but it wouldn't be very high and would be delayed slightly.
Michael already had a rough idea for a plan to motivate James Wong further.
"And 'The King's Man'?" he asked.
Robert quickly responded, "Muhammad has agreed to play the lead. I spoke with his agent, and the terms aren't too demanding—$500,000 plus box office bonuses. As for the director, I posted a job notice and received twelve recommendations."
Michael said, "Continue negotiations with Muhammad's side. We can offer box office bonuses but lower the base salary. If the North American box office hits the budget, we can give him a bonus equal to his base salary."
George Clint looked at Michael, admiring his strategy as a movie producer and company owner.
The planned budget for "The King's Man" is $25 million. Can an Arab spy film save the world and earn $25 million at the North American box office?
"Keep contacting agencies for more director candidates," Michael said, "and see if they have suitable recommendations."
He looked at the three of them and said, "This film is challenging to profit from, but we must treat it with the utmost seriousness."
Robert understood, aiming to minimize losses.
Although they were spending Arab money, the more they could earn through Hollywood-style calculations, the more could be converted into legitimate income for Seashore Entertainment.
Michael frowned slightly, knowing that "The King's Man" was more challenging than "Final Destination."
If given a choice, any director would likely avoid this script. He couldn't direct it himself, or it would be a disaster.
Maximizing the profits from Abu Dhabi's investment required careful planning.
If needed, they could look for directors from the music video industry, as they excel in visual storytelling and fast-paced shots, ideal for action films.
Mary reminded, "James Wong called yesterday, saying he needs funds."
"Funds can be approved. You keep an eye on it," Michael said. "This project is almost ready. George, find a suitable time to contact the media and hold a press conference for 'Final Destination.'"
George nodded, "Got it."
"Have you contacted Embassy Films?" Michael asked about the most crucial issue. "Any response?"
Robert said, "George and I spoke with three major shareholders. They are interested in cashing out but not strongly, and the management is also hesitant."
George added, "This distribution company isn't large, but it has stable annual revenue of several million dollars, supporting many people. The management's concerns about the future are understandable."
Michael thought for a moment and said, "Continue talking to the shareholders. Also, engage with the management and appropriately showcase our strength." He reminded, "Don't forget we have significant financial backing."
Hearing this, George and Robert both laughed.
After the meeting, Michael remained alone in his office, focusing on the acquisition of the distribution company.
"Final Destination" was progressing well, and "The King's Man" needed to see how much could be recouped. The distribution company would significantly influence the next decade's path.
Michael calculated his funds: $20 million from "The Purge," $10 million from Abu Dhabi after real project needs, $1.6 million shared among the four of them, and $1,000,000 from Koch Films plus $4.5 million in tax rebates.
This money should be enough to buy a distribution company.
If funds fell short, Miss Judith could help secure a bank loan.
The main issue was whether the shareholders wanted to sell.
Intentions can change at times.
Michael reviewed the profiles of Embassy Films' three significant shareholders. All were in their forties or fifties, long-time partners with good relationships.
One note from Robert caught his eye: these three had invested heavily in Nasdaq. With Embassy Films' moderate profitability, they were inclined to sell shares to invest in Internet stocks.
This could be an opportunity.
But how do we seize this opportunity? They were only considering selling. There were no guarantees.
Distribution channels were crucial for a film company; the sooner resolved, the better.
Michael spent the afternoon contemplating this. If he could acquire a distribution company, he could explore the upcoming Sundance Film Festival.
Just before leaving the office, he received a call from Greg Enrick of Lionsgate Films, asking to meet to discuss future distribution cooperation.