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Chapter 1134: Borrowing Money to Make Money is the Way to Go
🕑 Added 2025-01-08 20:00:08 +0000 UTCAfter the media and audience feedback from the Cannes premiere of Crouching Tiger, Hidden Dragon reached North America, Daenerys Entertainment immediately pushed the related news onto various media platforms, including newspapers, television, and the internet. Both The Hollywood Reporter and Variety published highly favorable reviews, and the first official trailer was released on YouTube.
Everything was handled with practiced ease.
In today’s Hollywood, Daenerys Entertainment is not only the most marketing-focused major studio but also, more importantly, the Westeros system controls a vast array of media resources.
Thus, even as the final promotional push for a series of summer blockbusters was in full swing, and with Crouching Tiger, Hidden Dragon still over two months away from its July 25 release date, the film managed to capture significant public attention during the current "kung fu craze" in the North American film market.
On the other hand, the summer season, which began on May 16, saw two new films—Police Story 4 and Absolute Power—with mixed fortunes.
Police Story 4 is Jackie Chan’s latest film, continuing the popular Police Story series from Hong Kong. However, after the success of Rush Hour last year, Police Story 4 underwent a complete upgrade in production scale, with the script revised to cater to Western audiences.
The project attracted attention from various Hollywood players and was eventually picked up by Disney, which is controlled by Vivendi.
The film was shot in various locations around the world, with a publicly announced production budget of $25 million. It opened in North America on 2,376 screens and, thanks to Jackie Chan’s popularity and a 7.8 average media score, earned $17.81 million over its first three days. The full opening week is expected to reach around $25 million.
This is considered a major success.
As for the film’s total North American box office, it will depend on its subsequent performance, but even though Disney initially offered very favorable terms, they are certain to make a profit this time, leaving other Hollywood studios regretting not being bolder in their bids last year.
In stark contrast, Clint Eastwood’s new film Absolute Power, produced in collaboration with Sony, tells the story of a lone thief who becomes embroiled in a presidential murder case and seeks to expose the evil and uphold justice. With a production budget of $50 million and an opening on 2,579 screens, the crime thriller earned only $15.17 million in its first three days, with a projected full opening week of around $20 million.
If the budgets of these two films at the start of the summer season were swapped, neither would be considered a failure. Unfortunately, one has a $25 million budget and is conservatively estimated to earn $50 million in North America, while the other has a $50 million budget and is unlikely to break even domestically.
In summary, the box office results for the first three days are: Disney is set to make a profit, Jackie Chan’s popularity in North America is further solidified, and Sony, despite not suffering a box office disaster, has once again stumbled.
Los Angeles.
After a week of leisure in China, Simon returned to North America to find himself buried under a mountain of work. Even as the new week of May 19 began, the situation remained unchanged.
Daenerys Studios, Malibu.
After breakfast, Simon arrived at his office at 8:20 AM. Amy Pascal also arrived early, planning to discuss some matters before the 9 AM executive meeting.
“Regarding Godzilla, some of the finer details are still being negotiated, but Toho is insisting on a 30% investment share with no room for compromise, Simon. If you’re okay with that, we can sign the agreement soon.”
Simon sat on the sofa in the reception area of his office, flipping through a list of documents just handed to him by Alyssa, multitasking as he asked, “A 30% investment is fine; we can agree to that. What are the details you mentioned?”
“Mainly the distribution commission and, more importantly, the revenue split from merchandise. We have the upper hand on the former and can probably cap it at 15%. The latter is mostly in Toho’s hands since they’ve been managing Godzilla for decades.”
Simon nodded, signaling Amy to continue. He was just asking to stay informed, not intending to intervene in these details.
Seeing Simon’s agreement, Amy understood that the move to outmaneuver Sony was essentially sealed. She glanced at her notes and smiled, saying, “At a party over the weekend, I ran into Chris Lee from Sony Pictures again. He mentioned that The Postman has been greenlit, mainly because Sony realized they probably wouldn’t get Godzilla. However, Sony only gave it a $40 million budget.”
Simon made some notes on the document in his hand and chuckled, “Greenlit is good. Remember when Waterworld was supposed to cost only $70 million?”
Since this wasn’t exactly a topic for open discussion, Amy didn’t elaborate and simply smiled before continuing, “Also, John Woo has been scouting a new project. He’s teaming up with Chow Yun-fat, the lead actor from Crouching Tiger, Hidden Dragon, which just premiered at Cannes. They’re planning a gunfight action film. I’ve seen the story outline—it’s about a hitman who fails a mission and is hunted down. It’s right up John Woo’s alley, but Danny talked to him, and it seems Woo isn’t very interested in continuing to work with us. He’s not planning to direct this one, just produce.”
Simon understood what Amy was implying.
If Simon thought it was necessary to keep Woo, Daenerys could offer better terms to try to retain him.
Simon, however, shook his head. “We stick to our standards. If Woo can’t accept that, let him go.”
In essence, after the successive successes of Broken Arrow and Mission: Impossible 2, John Woo had developed a desire to negotiate for higher pay and more creative control.
This was human nature.
Unfortunately, while other Hollywood studios might indulge successful directors, Simon wouldn’t. Having seen countless examples in his memory of directors who soared after success only to crash and burn, Simon had no intention of tolerating such behavior at Daenerys. If anyone wanted to get cocky, they could leave. Simon wasn’t in the business of coddling.
Amy, who had long since come to trust her boss’s judgment, didn’t argue. She simply noted it down and moved on, “Next is The Matrix. Simon, the Wachowskis have been talking to me several times recently. Independence Day is about to be released, and they feel their project should also get underway.”
The Wachowskis had caught Simon’s attention a few years ago, and their Matrix concept hadn’t been derailed by Simon’s butterfly effect. After completing their debut feature Bound, funded by Daenerys Entertainment, Simon sent them to work as assistant directors on Independence Day under Roland Emmerich to gain more experience.
Independence Day is set to release on July 4, and the Wachowskis’ work on it has long been completed.
Hearing Amy bring this up, Simon thought for a moment and nodded, “Sure, but the issue is still the release date. Keep an eye on that.”
“This is definitely a blockbuster,” Amy said. “Since you’ve always been so high on them, I think the summer of 1999 would be a good fit.”
“Agreed.”
Much of the pre-production work for The Matrix had already been completed. It was now the summer of 1997, and if they pushed hard, they could even release it in the summer of 1998. However, the 1998 schedule was already packed, so it would have to be 1999. Moreover, Simon knew just how successful this project had been in his memory. Not releasing it during the hot summer or year-end season would be a waste.
Even for a summer 1999 release, there were still two years to go.
From a business perspective, for the same potential return, the shorter the operational cycle of a sum of money, the more profitable it is. It’s the same principle: $100 million earning 10% in one year is very different from earning 10% in two years. Therefore, with the release date set, the closer The Matrix’s production start date is to the release, the better it is for Daenerys Entertainment.
Even though Daenerys Entertainment is now the Hollywood studio with the largest cash reserves, Simon has always been mindful of this issue.
Amy Pascal naturally had no objections.
The two continued to discuss a slew of details about Daenerys’ various operations, such as the Daenerys Games division’s development of a game project tied to Lucasfilm’s Star Wars prequel series, the upcoming summer tour following the conclusion of the second season of American Idol, and the progress on the modifications Simon had suggested after his recent visit to the construction site of Universal Studios Rome.
As they approached 9 AM, the two headed to the conference room for the Monday executive meeting. Walking down the hallway, Amy remembered something else, “Almost forgot, Simon, about that exchange program with the two Chinese universities, how should we handle it on our end?”
During his recent trip to China, Simon had visited the Central Academy of Drama, which was close to his courtyard house in Mao’er Hutong, and casually came up with the idea of bringing a group of students to Hollywood for an exchange program, giving the order on a whim.
He had assumed it would take some time for both sides to communicate and finalize a plan, but now that Amy brought it up, after a moment’s thought, Simon said, “Discuss this with Chen Qing. Since some of these individuals have special statuses, she’ll know. Arrange comfortable positions for them with favorable treatment. As for the rest, assign them to film crews currently in production as interns.”
Amy nodded in understanding.
The meeting lasted an hour. When Simon returned to his office, someone was already waiting for him—a middle-aged Asian man in his forties named Jung Soo-dong.
Just from the name, it was clear he was Korean.
Of course, that wasn’t entirely accurate.
Simon had already reviewed his profile while in China. Jung Soo-dong, 43, born in Seoul, South Korea, graduated from Yale Law School, currently holds American citizenship, and works at McKinsey International, a law firm specializing in mergers, acquisitions, and bankruptcy restructuring. He had also spent the past six years based in Hong Kong.
Although he hadn’t made partner at McKinsey, nor was he the head of McKinsey’s Hong Kong office, this middle-aged man with a dual degree in law and economics from Yale had solid experience, having participated in numerous M&A and restructuring projects during his time at McKinsey.
Not top-tier, but experienced.
This was one of Simon’s criteria for selecting puppets.
“Mr. Westeros, it’s… truly an honor to meet you.”
Facing Simon, this man, who had largely been held back due to his ethnicity, was visibly nervous. He instinctively bowed at a 90-degree angle, which pleased Simon. He needed someone who still retained Korean habits.
After the man straightened up, Simon didn’t offer a handshake but gestured for Jung Soo-dong to sit on the sofa in the reception area, while he walked over to his desk.
Jung Soo-dong hesitated, waiting for Simon to sit before he dared to take a seat, perching on the edge of the sofa. When Alyssa brought coffee, he instinctively stood up slightly, repeatedly thanking her.
Simon patiently waited for the man to finish his polite exchange with Alyssa before speaking, “Mr. Jung…”
Jung Soo-dong quickly turned his attention to the young tycoon beside him, respectfully and cautiously interjecting, “Bruce, Mr. Westeros, you can call me Bruce. That’s my English name.”
Simon, however, shook his head, “No, Mr. Jung, if you’re going to work for me, I want you to use your Korean name as much as possible.”
Jung Soo-dong was puzzled, thinking his interruption might have been inappropriate, and beads of sweat formed on his forehead as he quickly nodded, “Oh, of course, of course, no problem.”
Whatever the young tycoon said was law.
Jung Soo-dong still didn’t understand how he had suddenly found himself in front of Simon Westeros. When his boss informed him of this a few days ago, he thought it was a belated April Fool’s joke. It wasn’t until he returned to the U.S. and received the meeting date from Simon Westeros’s office, and the global chairman of McKinsey flew in from Chicago to quietly meet with him to probe the reason, that he finally realized.
This wasn’t a dream.
The only thing Jung Soo-dong could confirm was that this was definitely a great opportunity for him.
A life-changing one.
The more he valued this meeting, the more nervous he became, and his usual calm and composure vanished. Feeling the sweat on his forehead, the middle-aged man almost wanted to cry.
Anyone with eyes could see that his current performance wasn’t exactly impressive.
Simon, of course, could see the man’s nervousness but didn’t mind. He continued, “Let’s get straight to the point, Jung. I want you to come work for me. Any issues?”
Jung Soo-dong’s eyes lit up, and he nodded without hesitation, “Of course, of course, Mr. Westeros.”
“Good,” Simon affirmed, then continued, “Here’s the situation. I’m planning to make some investments in South Korea, which is why I’ve approached you, Jung. First, what’s your take on South Korea’s current economic situation?”
Jung Soo-dong quickly realized two things.
He was already hired.
The reason Simon Westeros had sought him out was clear.
Thus, he began to relax. Hearing Simon’s question, he quickly thought for a moment and said, “Mr. Westeros, in my opinion, South Korea’s economic situation is just as precarious as Thailand’s, which has recently come under attack. This is evident from the Hanbo Steel bankruptcy earlier this year. If Mr. Westeros is looking to invest in South Korea…”
Jung Soo-dong paused, now even clearer about why he had been approached, but only briefly before continuing, “Now is indeed an excellent opportunity, as South Korea’s economy has been doing well in recent years, with many companies worth investing in. Therefore, if South Korea faces an economic crisis that leaves some companies in trouble, Mr. Westeros could launch a vulture acquisition.”
Here, Jung Soo-dong paused again, seeing the young man beside him nod slightly, and continued, “However, there are also many obstacles. South Korea’s economy isn’t very open. For example, under current South Korean law, the maximum share of a company that foreign investors can hold is only 7%, making it impossible to gain control. Of course, South Korea has been pushing for financial reform since last year. If a crisis occurs, I believe that as long as Washington puts pressure on Seoul, many restrictions will be lifted in the short term.”
Hearing this, Simon smiled slightly, “So, Jung, you understand what I want you to do, right?”
Jung Soo-dong didn’t hesitate this time, slightly bowing toward Simon on the sofa, “Yes, Mr. Westeros.”
“Good,” Simon repeated his earlier affirmation, pushing a document that Alyssa had just placed in front of him toward Jung Soo-dong, “In that case, this is your first position after working for me—a seat on the board of directors at Bank of New York. Consider it a part-time perk. Oh, it’s now Bank of New York Mellon.”
Jung Soo-dong looked surprised again, carefully picking up the document Simon had pushed toward him. Opening it, he saw it was an employment contract.
He quickly flipped through it—it only needed his signature.
This made Jung Soo-dong feel like he was dreaming again.
Even though he had been based in Hong Kong, Jung Soo-dong knew about Bank of New York’s recent successful merger with Mellon Financial Corporation to become a top-tier U.S. bank. Moreover, given his previous work, he certainly understood what a board seat at a major bank with assets exceeding $100 billion meant.
Given his ethnicity, even as a manager at McKinsey, he had never dared to dream of such a position.
However, Jung Soo-dong wasn’t a fool and quickly grasped the underlying implications.
No matter how Simon Westeros had secured this position for him, if he wanted to keep his seat on the Bank of New York Mellon board, he would have to fully obey Westeros. The moment he started having his own ideas, he’d be out, and possibly lose everything else Westeros had given him.
Simon didn’t elaborate further, confident that the man would understand.
On a deeper level, giving one of the two Bank of New York Mellon board seats he had acquired to Jung Soo-dong was partly because the man was easier to control, and partly because it was related to the upcoming plans for South Korea.
Veronica’s ongoing financial review of the Westeros system’s various companies had been continuous, but based on past data, Simon could roughly estimate that the entire Westeros system had around $60 billion in freely available cash reserves.
Even compared to Simon’s recent shrinking net worth due to the Nasdaq crash, this amount wasn’t substantial.
Simon had never intended to use all of it.
For those at the top of the pyramid, borrowing money to make money has always been the way to go.
By placing Jung Soo-dong on the Bank of New York Mellon board, Simon was not only giving him a sweetener but also preparing him to coordinate the Westeros system’s extraction of funds from Bank of New York Mellon for investments in South Korea. Of course, Bank of New York Mellon wouldn’t be the Westeros system’s only source of funds.
