Chapter 477
Chapter 477
In the reception area of Marvel Entertainment, Matthew and Helen sat down with Kevin Feige, who introduced them to Avi Arad, the chairman and co-creator of the company, and Isaac Perlmutter, its CEO.
These two held the final say.
After a brief exchange of pleasantries, the conversation shifted to the matter at hand.
Isaac began, a hint of uncertainty in his voice, "Kevin mentioned you're interested in investing in Iron Man. I have a proposal for you."
Helen glanced at Matthew but remained silent. His presence meant he was taking the lead; she would only speak if absolutely necessary.
Matthew leaned back into the plush sofa. "I'm listening."
"You would star in the film," Isaac explained, "and also handle the financing and take on a producer role."
"And my salary?" Matthew asked.
Isaac hesitated. Avi stepped in, "It would be part of your investment."
Matthew gave a slight nod. This was close to what he'd had in mind. He exchanged a look with Helen, then stated the terms they had discussed beforehand. "I can agree to that in principle. But my fee is a 20+20 deal. The twenty-million-dollar base salary would be converted into my investment. Alternatively, one-third of your production budget could be counted as my fee and rolled into my investment."He wasn't budging on his terms.
Upon hearing Matthew's steep demands, Avi glanced over at Isaac, who subtly shook his head.
Kevin Feige also shot a look at Isaac. He had warned him that Horner was too shrewd to take a pay cut, even for the lead in a superhero film. But Isaac hadn't believed him and had insisted on trying.
If they wanted to get Iron Man made, they needed to raise the rest of the capital. The production budget was currently sixty million dollars short.
That was a significant sum for a mid-budget Hollywood film, and an enormous amount for Marvel Entertainment, a newcomer to film production. Their only other option was to mortgage the rights to some of their most popular superheroes.
Their negotiations with Paramount Pictures had also stalled, as the distributor was hesitant to invest heavily in a fledgling production company.
In fact, Paramount was waiting to see a rough cut of the film before deciding on the scale of its theatrical release.
Matthew was keen to invest in Marvel's budding superhero franchise, but he knew that as a relative newcomer to this level of film financing, he couldn't afford to seem too aggressive or impatient.
Some things couldn't be forced. Pushing too hard now could put him in a weaker position later.
Matthew had a strong conviction that Marvel's superhero films were destined for great success. The men across from him, however, did not share that certainty.
According to Helen's research, the Marvel executives were essentially taking a gamble. They knew Hollywood didn't take them seriously, and they lacked confidence in their own venture.
If they were truly confident, Marvel would have simply mortgaged the character rights instead of scrambling to raise funds from multiple sources.
By seeking outside financing, Marvel was undeniably mitigating its own risk. The executives had clearly given themselves an escape route.
Helen's research had shown that Marvel desperately needed the money for the Iron Man project. So, the silence in the room stretched for less than thirty seconds before Avi was the one to break it.
"Mr. Horner, even if you don't take on the role of Tony Stark..." he said slowly. "That could be an obstacle to investing in the project."
"Is that so?" Matthew's brow furrowed, genuinely perplexed.
Kevin Feige glanced from Matthew to Avi and Isaac, but kept his thoughts to himself. They needed the money for shooting and production as soon as possible, and for now, he wasn't high enough on the totem pole at Marvel; Avi and Isaac were his superiors.
But he knew one thing for certain: Marvel's future wasn't in comic books, and its influence on its own was limited. As long as their planned film franchise succeeded, Marvel's destiny wouldn't have to be in anyone else's hands.
Since Matthew was no longer in the running for the lead role, Feige felt no need to speak up.
He just needed the money.
He needed money for the film, and if that's what it took, he would let Avi and Isaac handle the negotiations. If things went south, they would be the ones to take the fall.
After a moment of silence, Matthew asked, "What's the funding shortfall for Iron Man?"
Paramount was targeting a summer 2008 release for Iron Man, and while there were other potential sources of funding, Avi and Isaac couldn't afford to wait. What if they failed to secure another backer? The money they had already poured into the project would be lost.
Isaac exchanged a look with Avi. Perhaps Horner was a better option than a bank loan or other market financing.
"There is a funding deficit," Isaac said, wary of scaring off a potential investor. "The shortfall is forty million dollars."
"That high?" Matthew's frown deepened.
He had the money, of course, but fronting forty million dollars—even if the payments were staggered over time—was no small matter.
Helen looked at Matthew, knowing his financial situation precisely. Aside from purchasing the Horner Estate, he hadn't touched most of his earnings. A significant portion was invested in Apple stock, leaving him with no more than twenty million dollars in liquid assets, and that included the first six-million-dollar payment he'd just received for I Am Legend.
Matthew considered this for a moment. "I'd like to know what my return would be as an investor in the film."
In Hollywood, it was never as simple as investing forty percent of the budget to get forty percent of the total revenue.
"Naturally, you would receive a percentage of the box office profits," Isaac offered.
At his words, Helen, whose hand was resting on her knee, subtly nudged Matthew.
Matthew understood perfectly, even without Helen's warning. He rejected the offer outright. "That's a non-starter. I'm not some outsider investor. Don't forget, I'm part of this industry."
Isaac glanced at Avi, who remained silent.
Inwardly, Kevin Feige smirked. From their previous encounters, he knew Matthew wasn't just difficult to deal with; he was ruthlessly profit-driven.
How could they expect a star who knew the ins and outs of Hollywood accounting to invest tens of millions for a cut of the box office profits?
Matthew was no fool.
He didn't wait for Isaac or Avi to respond. "I don't need to remind you of my profession or my standing in this industry, do I?"
Helen stepped in. "Matthew is a member of the 20 Million Dollar Club. He has enormous influence, not to mention a vast network of contacts throughout the industry. I'm sure you've considered the promotional advantage Iron Man would gain simply from his involvement."
Isaac and Avi wanted Matthew's investment because they knew full well that, unlike a bank or a lending institution, his money came with more than just a dollar value.
If it were only about capital, they wouldn't need to be courting him this earnestly.
To say nothing of Matthew Horner's personal blog—one of the most famous and widely read in the entertainment business—which was a promotional platform in itself.
As soon as Helen finished, Matthew continued, "I can invest forty million dollars in Iron Man."
The two executives glanced at each other. Though they said nothing, their mutual relief was palpable.
Isaac, in particular, felt a sudden pang of regret that he hadn't said the shortfall was actually sixty million.
But Matthew wasn't finished. He hadn't laid out his conditions yet.
This was a business negotiation, and Matthew didn't hesitate to state his terms. "I want a completion bond from one of the top three insurance companies in the country to act as a third-party guarantor for the project, and I want PwC to be the financial auditor."
Investing in a film wasn't just about throwing money at it; there were countless examples of investors losing everything even on successful movies.
"And as an investor, I demand a full share of the film's revenue, proportional to my investment. Furthermore, for the next ten years... I want the right of first refusal to invest the same percentage in the next twenty Marvel superhero films, under the same terms as Iron Man."
"We can't accept that!" Isaac objected immediately.
Avi added, "Your terms are too steep."
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