Made In Hollywood

Chapter 256: Chapter 256: Exorbitant Spending



In the luxurious restaurant of the presidential suite, delicate pastries filled the table. Victoria was wearing the khaki low-cut top from the previous day. With her left hand resting on the table, her right hand trembled as she picked up a small, delectable piece of Napoleon cake. Her half-closed eyes fluttered as she slowly brought it to her mouth, only to have it fall from her lips before she could chew.

A force from behind struck her again, causing her body to tremble uncontrollably. The Napoleon cake fell from her gasping mouth and rolled about a foot away on the pristine oak table.

"Darling, don't you like the breakfast I prepared for you?"

With both hands gripping Victoria's slim waist, Duke pressed tightly against her arched back and hips. "Or was last night not exhausting enough, leaving you still not hungry?"

"I like it..." Victoria turned around, firmly grasping Duke's hand with her right hand as she gasped. "I like everything you prepare for me, darling. Go harder!"

"Then savor it slowly."

Duke slightly increased his force, pushing Victoria forward. She had just picked up the Napoleon cake and was about to place it in her mouth when the strongest force came from behind again. The impact was so intense that not only did the pastry fall once more onto the table, but Victoria, overcome with pleasure, shouted unabashedly. Her upper body collapsed onto the table, smashing the exquisite breakfast into countless crumbs, and her flushed face, in her ecstatic movements, became smeared with cream.

Five minutes later, the restaurant fell silent. The breakfast had been utterly destroyed, and the insatiable couple moved their activities to the bathroom.

By noon, after a Chanel outfit had been delivered, Victoria Adams finally emerged from the suite.

"I'll miss you, darling," she said, seemingly reluctant to leave. "Shall we meet again?"

Her eyes carried endless longing as though she had developed genuine feelings from this one-night affair.

Duke avoided the topic, instead handing her a business card with only a string of numbers. He tucked it into her hand while lightly pinching her cheek. "Call this number when you're in Los Angeles."

"I definitely will." Victoria carefully pocketed the card and walked away.

Returning to the room, which now resembled a battlefield, Duke called for room service. He stepped onto the balcony and dialed Tina Fey's number. Last night's matters were now behind him, and he was back in work mode.

Progress was moving smoothly. Tina Fey had contacted J.K. Rowling's literary agent through the publisher and would soon meet the author in person to negotiate the film and peripheral rights.

Duke had no intention of appearing in person. Firstly, he was preparing to return to Los Angeles. Secondly, it was unnecessary. The other party wasn't even a professional writer yet. His appearance would only make her realize the project's importance, thereby raising her bargaining power. It was better for Tina Fey to handle it, ensuring the price remained low while securing the rights to one or two follow-up books for a reasonable cost.

J.K. Rowling's struggles were indeed sympathetic, and her perseverance was commendable. But business is business. Only a fool would let emotions dictate terms and offer a price that didn't align with her current status.

Besides, if the Harry Potter series became as successful as it had once been, would Rowling lower her rates out of gratitude for Duke's approach?

Don't kid yourself—this was a commercial transaction, not child's play.

While he hadn't yet decided whether to collaborate with someone or to proceed independently, Duke intended to seize control of the project first.

His mother needed to remain in Europe for discussions with business groups, and Tina Fey was engaging with Rowling and her agent. Duke decided to return to North America alone, as time was precious to him. To meet next summer's release schedule for The Matrix and successfully adapt Tolkien's masterpiece, ample preparation time was essential. Moreover, Chicago was about to conclude its North American run, and he needed to settle the box office revenue with Warner Bros.

By mid-March, Chicago was down to 150 theaters in North America, with a daily box office intake of less than $50,000. On March 15, it officially ended its North American run, grossing a total of $185.5 million domestically.

Globally, the film crossed the $300 million mark, though its momentum had slowed in key overseas markets. The remaining box office revenue would take time to trickle in.

Since its Thanksgiving release, The English Patient had trailed Chicago in both North American theaters and box office. Despite faring better in the 69th Academy Awards nominations, it had accumulated just $68.75 million domestically, a far cry from Chicago.

With Chicago officially concluding its run, Duke's accounting team began negotiations with Warner Bros. to expedite the North American box office revenue settlement. Duke urgently needed funds, as Nancy Josephson was already in talks with Cruise's studio and Paramount Pictures. If successful, it would be a substantial investment.

Duke's string of successes had earned him significant influence. Warner Bros. wanted to maintain a strong relationship with him and participate in his future projects. As a result, they processed the revenue settlement for Chicago with unprecedented speed.

After deducting taxes and other fees, Warner Bros. received $84.5 million from North American theaters. According to their distribution agreement, they withheld 10% ($18.55 million) as a distribution fee, deducted $15 million in promotional expenses, and transferred $50.95 million to Duke's production studio.

The studio immediately paid various association fees and settled the remaining third of the cast and crew's salaries, leaving $45 million in the account. Including revenue from the film's soundtrack, North American television broadcast rights, and merchandise, Chicago generated a pre-tax profit exceeding $30 million in the North American market alone.

Overseas revenue would take longer to settle. However, along with Warner's February payment for the remaining overseas box office revenue from Saving Private Ryan, it would provide enough funds for Duke to invest in Tom Cruise's Mission: Impossible project and begin pre-production for The Lord of the Rings trilogy in New Zealand.

Nancy Josephson soon brought good news: after five rounds of negotiations, Tom Cruise and Paramount agreed to a $30 million investment from Duke's studio to complete Mission: Impossible's funding. Under the agreement, Duke's studio would receive proportional profits and partial film rights.

Cruise's agreement was based on Duke's full support of his leadership in the project, as Cruise retained the majority of the film's rights.

Although $30 million was significant, Duke found himself strapped for cash. His Matrix project would require at least $80 million, and he couldn't muster the funds.

Personal net worth and liquidity are two separate things.

Excluding gains from stocks like Microsoft and Yahoo, Duke's personal net worth approached $400 million. However, much of it was tied up in stock and equity. His continuous investments in Warner Bros. and Victoria's Secret further strained his liquidity.

"My suggestion," said Duke's accountant, David, in the studio's meeting room, "is to use Chicago's rights or part of your Warner Bros. shares as collateral for a bank loan to cover the film's funding needs."

Duke nodded in agreement, finding the idea practical.

"And," added production manager Robin Grand, "we could bring in external investment. Warner Bros. has expedited their review process. They're willing to invest partially in this project. Plus, given that it's a sci-fi film, we can explore product placements."

These were standard Hollywood practices. Duke thought for a moment before addressing his agent. "Nancy, once Warner Bros. approves the project, negotiate the investment ratio, distribution shares, and pre-sales rights with them. You know my bottom line."

Nancy understood. Her earnings depended on securing favorable terms for Duke.

After nodding, Nancy inquired, "The Oscars are coming up. Aren't you attending?"

"I'm not planning to," Duke replied, glancing at Robin Grand. "Robin, Charles, and I are heading to Australia and New Zealand, then to Hong Kong. Warner Bros.' Asian branch is already waiting for us."

In Australia, Duke planned to visit Fox Studios near Sydney. New Zealand was his focus for the coming years, and he expected to spend much of the next three to five years there.

As for Hong Kong, the purpose was straightforward: to scout locations and meet the two action choreographers Warner had contacted, though negotiations had yet to resolve payment disputes.

....

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