North American media that are interested in Firefly’s revenue status, in order to gain attention, began to follow the information collected from other sources when they could not get Firefly’s public annual financial report and sent interview invitations to Firefly’s executives but were rejected. Do your own analysis.
The data given by the professional financial media is quite reliable, while the non-professional entertainment media basically has no research evidence. It is completely fabricated according to the model of how to attract attention and how to write. Articles on speculation about business conditions spread across large and small media, most of which are groundlessly exaggerated in order to attract attention, and the sales of these magazines often have a considerable increase. In just a few days, the annual profit of Firefly Pictures in the media even soared to a maximum of 2.6 billion US dollars. Even Eric himself didn't know how those magazines calculated it.
Jeffrey pushed open the door of Eric's office, and saw Eric's whole body sunk in the leather chair, his legs propped on the dark red desk, and a thick printed document in his hand, leisurely Flipping through the pages, he knocked on the door again.
Eric put away his sitting posture, put the documents in his hand on the table, and then reached out to Jeffrey: "Jeffrey, what's the matter?"
Jeffrey walked across to Eric, pulled a chair and sat down, glanced at the document Eric had just read, and asked curiously: "New script?"
"No," Eric smiled, and pushed the document over: "Look, it was sent by Chris."
Hearing that it was sent by his son, Jeffrey picked it up curiously, only to find out that it was a contract about the equity incentive plan for the management of ie company. Hastily turned a few pages. Jeffrey was a little dizzy and didn't continue watching. It's just a contract, but it has more than 110 pages. It's like a thick book, and the rules and regulations are more complicated than the contracts signed by Hollywood stars and studios.
"During Thanksgiving, I discussed with Chris, and planned to give about 20% equity rewards to the management of IE, Yahoo, and Hotmail in 1995 based on their performance. This is the draft contract that Chris sent me," Ai Rick saw Jeffrey quickly put down the typescript in his hand, and took the initiative to explain.
With the speed of market expansion shown by ie and Yahoo. The market value of the two companies that have already exited the product has exceeded 100 million US dollars in the capital market. Therefore, the 20% equity incentive plan is not a trivial matter. Chris negotiated with the management of the three companies. It took a month to get it done, and the contract has detailed regulations on various terms and possibilities. There are more than one hundred pages. Even Eric was a little surprised when he saw it for the first time, but after reading it, I also feel that there are no clauses in it that are groundless and aimless. It can be seen that Chris has spent a lot of energy on this matter.
"I don't quite understand what you guys have done." Jeffrey smiled and shook his head before saying, "Caroline has already made the annual financial report. You should read it first." Fury handed Eric the documents he brought when he just walked in.
"Oh, so fast, I thought it would be another week," Eric took it over and said, the new year has just passed, and it has been less than a week since I went to work after the holiday, Eric did not expect the work efficiency of the financial department will be so high.
"I urged Caroline a few times on purpose," Jeffrey looked at Eric as he looked through the documents and said, "There's such a lot of noise outside, I always feel relieved to do it earlier, Eric, right? Let Caroline hold a press conference to reveal a little information to the outside world, otherwise the media will not stop."
Eric looked down at Firefly's 1992 financial report and said, "They have touted Firefly's annual profit to 2.6 billion. Anyone with a little brain knows that this is nonsense, so let them guess." Well, we are under no obligation to satisfy their curiosity."
Jeffrey smiled, with satisfaction on his face, and said: "Although the figure of 2.6 billion US dollars is indeed a bit outrageous, if the film and television entertainment market in North America and overseas continues to expand according to the current situation, it may not take a few years for Firefly to to that extent.”
"Of course, it's a matter of time," Eric said.
Firefly’s current main profitable businesses include four major segments: film and television entertainment, peripheral products, theme parks, and television business. Unlike more than ten years later, the profit of film and television entertainment only accounts for a small proportion of the revenue of the media group. At present, the film and television of the seven major Hollywood film companies Entertainment income is still the most important profit point.
In the 1992 Firefly financial report, the total revenue of the three main sectors of film and television entertainment, including North American box office revenue, overseas box office revenue, and video tape distribution, was US$4.2 billion. Although overseas box office revenue accounted for the highest share, reaching US$1.8 billion, but The profit margin of the overseas box office is the lowest. After deducting the share of overseas cinema companies and the distribution budget and other costs, the overseas profit margin is only 14%, with a profit of about 250 million US dollars, while the profit margin of the North American box office is higher, 1.5 billion. The North American box office revenue in US dollars, after deducting the publicity and production costs, Firefly can get a total of 520 million US dollars. The final videotape distribution has the highest profit margin, because it is self-published, and Firefly’s profit reached 580 million U.S. dollars after deducting distribution costs from the 900 million U.S. dollars in videotape revenue. This figure is almost the same as the box office revenue, and even a little more than the North American domestic revenue, but this is not too surprising. As early as the late 1980s, the video revenue of the major film companies was already equal to the box office revenue.
The next revenue from peripheral products will mainly come from the Disney peripheral products store. After the completion of the acquisition of Disney, Firefly handed over the development rights to the peripheral products of "Toy Story", which sold at the box office last year, to the relevant departments of Disney. Therefore, this year's Disney store Store sales were $1.6 billion and gross profit was $330 million. Theme parks and resorts had revenue of $3.7 billion, but because of the huge operating costs, the profit margin was only about 10%, and the revenue was $360 million.
besides. The financial department allocated the TV series licensing revenue of Firefly Films to the TV business. Combined with "Friends," "The X-Files" and "Who Will Be a Millionaire," combined with Firefly's 10 percent stake in the Fox network, the profits totaled $720 million.
If operating expenses are not considered at all. All the above-mentioned profits add up to a total of 2.76 billion US dollars, which is indeed almost the same as the 2.6 billion US dollars in annual profits advertised in the media.
However, although some costs have been deducted from this figure, the salaries and other software and hardware expenditures of thousands of employees in the Firefly system are still quite large, and Firefly also provides a steady stream of technical departments for its digital field and Pixar Studios. The technology research and development funds, plus the fact that Firefly has to pay off part of the principal and interest of the two billion US dollars in debt it had originally acquired for Disney, minus these expenses. A profit of $2.76 billion leaves only about $1.5 billion.
This is not counting the profits that Firefly eventually fell into the pocket. Don’t forget that the sales tax ratio of North American companies is as high as 35%. After deducting the taxes that should be paid, Firefly’s annual net profit is only 980 million.
"980 million!" Seeing the end, Eric couldn't help sighing, feeling an urge to fight desperately with the IRS.
"Yeah, 980 million!" Jeffrey's tone was quite uplifting. At present, the top seven in Hollywood, because they own TV stations with higher profits such as Turner Broadcasting Company. Warner's annual profit has only reached 950 million U.S. dollars, and Warner has been the hegemony of Hollywood for almost ten years. And the financial report in Eric's hand also announced that starting from this year, Firefly has finally driven Warner off the position of Hollywood boss. Thinking of this, Jeffrey couldn't help asking: "Eric, the next one What are you going to do?"
Eric put down the financial report documents, shook his head and said: "I have no further plans at the moment, at least until next year."
Jeffrey said unexpectedly: "Why, we already have so much cash in our hands, it would be a pity if we don't invest it."
"But we can't simply invest for the sake of investment, and the cash can't meet my needs," Eric said. According to the historical trajectory, the scale of investment in movies is getting higher and higher, which means that film and television entertainment The profit of this business segment will decrease rapidly. In contrast, the profit of the TV network has been rising, and even after more than ten years, it may reach more than half of the total revenue of the media group.
Therefore, Firefly's next expansion plan will definitely develop into the TV business.
However, although none of the three major TV networks in North America have yet fallen into the hands of media groups, and their market value has not started to skyrocket, but if they want to acquire them, the asking price will still not be too low. The oil crisis of the Gulf War is such a big fortune. It is not so easy to encounter the second time, and Eric does not want to borrow heavily from investment institutions, so the best way is of course to rely on his own strength to accumulate funds.
Although Firefly's profit this year has already excited the company internally, as long as next year's "Jurassic Park" can achieve a sensational effect and record-breaking box office like the original time and space, then Firefly's profit next year will skyrocket again. With some other side work, Firefly could certainly raise enough money to spend on network acquisitions.
Eric was talking about his future plans with Jeffrey. Allen knocked on the office door a few times and walked in after getting permission.
"Eric, here is an interview invitation for you, I think you need to see it?" Allen nodded at Jeffrey and walked over.
Eric was a little puzzled. He told Allen long ago that he would reject all interview invitations from the media. Since Allen still sent the invitation letter to himself, it would definitely not be a simple invitation.
""Forbes" magazine?" Eric raised his eyebrows in surprise when he saw the interview invitation letter, and he had a bad feeling in his heart.
Allen nodded, but his expression was quite happy: "This is an invitation personally sent by Steve Forbes, the editor-in-chief of "Forbes" magazine, and there are some other materials below."
Eric hummed, but continued to read.
Since the early 1980s, "Forbes" has launched a sensational list of the richest people in the United States. Since 1985, with the rapid rise of the Wal-Mart supermarket chain, Sam Walton, the founder of Wal-Mart, has occupied the top spot on the list of the richest people in the United States. richest man position.
However, it is a pity that Sam Walton passed away in April last year, and his wealth of more than 20 billion U.S. dollars was evenly distributed among his wife and several children. In this case, Walton Although the Walton family is still the richest family in the United States, in terms of personal wealth alone, it is impossible for any member of the Walton family to become the richest man in North America.
At this time, in the information attached to the interview invitation sent by "Forbes" magazine, an overall valuation of Firefly Film Group was made, and the final figure was 10.5 billion U.S. dollars. "Forbes" magazine Also based on the information collected from various sources, excluding the liabilities of Firefly Pictures, plus Eric's assets owned by Firefly Investment Company, the valuation of Eric's worth is 9.5 billion US dollars, and this figure, Can be able to win the first place in the rich list of North America.
In the original time and space, in 1995, with the great success of win95, Bill Gates' net worth soared, and he topped the list of richest people in North America with a net worth of more than 12 billion U.S. dollars. However, the North American economy has not yet begun to recover. The miraculous Sam Walton passed away, and Eric's valuation of 9.5 billion US dollars has already been able to get the top spot on the rich list.
Calculating carefully, Eric currently holds more than 98% of the assets of Firefly. The shares of Firefly held by Jeffrey and Michael Lynn were also diluted after the acquisition of Disney. Jeffrey’s shareholding ratio Only one percent is left, Michael Lynn's is even less, and Pixar's executives John Lasseter, Ed Kamal, and Stan Winston in charge of the digital field are just holding on. There are some shares in the corresponding branch company, so it can be said that Eric almost completely owns Firefly.
If Firefly is a listed company, with this year's performance, after the annual financial report is released, it is basically not a problem for the market value to easily break through the valuation of 10.5 billion US dollars given by "Forbes" magazine, but "Forbes" magazine obviously also knows the strong investment in film and television. Uncertainty, so the valuation given is relatively accurate, and this figure minus the liabilities of Firefly Films is obviously Eric's net worth through this company, but Eric is still high The technology industry has some other investments. Cisco has gone through a number of expansion-oriented corporate mergers and acquisitions. The number of shares held by Firefly Investment has dropped slightly, but it still maintains a 36% shareholding. Based on Cisco’s current market value, it is about one billion This is the most valuable business that Firefly Investment currently owns.
As for the billion-dollar cash reserve in the hands of Firefly Investment, "Forbes" magazine obviously failed to find out.
Calculated in this way, 9.5 billion US dollars is indeed more in line with Eric's current net worth on the surface. (To be continued..)