Chapter 309: Complete Disappointment

[Chapter 309: Complete Disappointment]

Eric listened quietly to Robert Shea's justifications, striving to mask his urge to laugh out loud.

Robert Shea insisted he harbored no personal interest, presenting a facade of integrity. However, Eric was certain that Michael Eisner had undoubtedly engaged in deep conversations with Robert Shea, promising him certain advantages. Otherwise, Shea wouldn't be so brazenly attempting to hand over the overseas distribution rights of Teenage Mutant Ninja Turtles to Disney.

With a string of successful films under his belt, Eric was no longer the naive kid who entered Hollywood a year ago; his ambition had grown considerably. He had openly expressed to more than one person that his target was all of Hollywood. In this context, it was only natural for him to recruit talent to further his goals, and he didn't mind sharing power with those who could help him rise quickly.

This was also one reason why Eric had shown some tolerance towards Robert Shea. Even when Shea had clearly taken advantage during that recent crisis to reclaim 10% of Firefly Films' shares, Eric chose to endure it. At that time, Firefly had achieved significant success with five films slated for release by the end of the year, and the rights to those five major films were worth far more than the mere $60 million that 10% represented.

As long as Robert Shea managed Firefly wholeheartedly, Eric felt all these concessions were not in vain. With New Line and Firefly fully merged, Eric would receive over 70% of the profits when Teenage Mutant Ninja Turtles generated dividends at the year's end, while Robert Shea, the chief contributor, would only get 25%. It was understandable why Shea might feel somewhat imbalanced about that.

When Shea had recently played some small tricks with the film Sleep with the Enemy, Eric had let it slide. But now, hearing that Shea wanted to hand over the overseas distribution rights of Teenage Mutant Ninja Turtles to Disney, Eric felt utterly disappointed in him.

He had made it clear to Shea previously what his plans for Firefly entailed. Although they had merged with New Line, Firefly's distribution capabilities remained relatively weak. Teenage Mutant Ninja Turtles had gotten a push from Eric's endorsement, allowing Firefly to commit 2,000 screens for an opening. That was the limit, as the release of Teenage Mutant Ninja Turtles forced a small film left over from New Line to be delayed, given that Firefly had no more resources to allocate to theaters.

In comparison, any of the major seven studios could easily raise over 5,000 screens to support the simultaneous release of two to three big-budget films, although typically, studios avoided this to prevent unhealthy competition.

Eric initially planned to take the next few years to utilize Firefly's potential blockbuster advantage to expand domestically and internationally. He understood that establishing a complete distribution channel was crucial; even if it meant earning less initially, building a strong distribution network was fundamental for a major studio's survival.

After all, everyone knew that relying on other studios' distribution channels wasn't sustainable in the long run. Given the chance success of Teenage Mutant Ninja Turtles, if Robert Shea's mindset was already so imbalanced, then as Firefly grew, internal turmoil seemed almost inevitable. Firefly represented a crucial cornerstone for Eric's foray into Hollywood, and he absolutely would not allow such a situation to unfold. The only solution seemed to be removing Robert Shea from the equation.

Although Eric had made up his mind, he also recognized that now was not the right time for such drastic measures. The integration of New Line and Firefly had just begun, and most of the current leadership was still loyal to Robert Shea. If he were to oust Shea right away, there was no telling if these individuals would leave with him, especially with the support of other factions.

If that came to pass, the newly integrated distribution channel would quickly crumble -- something Eric was determined to avoid at all costs.

"Eric, are you even listening to me?" Robert Shea asked, tapping the table lightly, showing his irritation at Eric's distraction.

"Oh right, where were we?" Eric looked up, feigning nonchalance.

"I was saying, how about we hand the overseas distribution of Teenage Mutant Ninja Turtles to Disney? I've run the numbers, and according to the terms Michael Eisner provided, we could at least make an extra $10 million."

Eric shook his head. "Robert, I don't agree."

"Why not?" Robert Shea raised his voice.

Eric replied, "Robert, have you considered why Michael Eisner would put forth such favorable terms for us?"

"This... is a win-win situation," Shea hesitated before answering.

Eric immediately countered, "No, Robert. Based on Firefly's current overseas distribution ability, if we opted to release it ourselves, the overseas box office might only reach around 60% or even less of what the big studios would achieve. But I've told you before: while we might earn a bit less right now, we could use this opportunity to establish a network and expand our distribution overseas. If we follow Eisner's suggestion, we might make some quick cash, but we would never establish our own distribution network."

"Eric, don't you think that's too steep a price? To develop a distribution network, I think we could expand using low-budget films, which wouldn't cost us too much. But it seems wasteful to use a big hit like Teenage Mutant Ninja Turtles to establish that channel."

Eric pressed his right hand down on the meeting table, trying to suppress rising frustrations, but he quickly exhaled, continuing, "Robert, low-budget films won't make significant overseas profit if they aren't successful. If they aren't profitable, those overseas distributors won't help us; they're not a charity. You know how it is -- many films in Hollywood that earn less than $50 million are sold outright to overseas distributors; even the major studios don't bother with global distribution for those."

"Eric," Robert Shea locked eyes with Eric, speaking seriously, "Teenage Mutant Ninja Turtles is my project; I want to maximize its potential profit. I believe Firefly's main goal right now should be to make money. Once we have funds, I am confident expanding our channels will be straightforward."

*****

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