Chapter 538: Awkwardness

[Chapter 538: Awkwardness]

Thinking about Rachel's advice to be more proactive, Caroline took a deep breath. She gently patted the stack of newspapers in her hand before using the spare room key that Allen had given her to open Eric's suite door.

It was already 8:30 in the morning. Caroline had accompanied Eric to a cocktail party the night before as his translator. Although she hadn't drank much, Eric couldn't resist the host's hospitality and had indulged a bit too much, leaving him still asleep at that hour.

After having breakfast and taking a walk in a nearby park, Caroline ran into Allen, who was getting the newspapers ready for the day and planned to wake Eric. Allen was quite impressed with the polite girl who greeted him, and knowing that she liked Eric, he decided to provide her with an opportunity.

Caroline pushed open the door to the luxurious suite. She peeked inside and seeing that the living room was empty, she walked in. She placed the newspapers on the coffee table and headed towards the bedroom door, where she gently knocked a few times.

"Just a minute."

A voice called out from the bedroom, startling her. Before she could react, the bedroom door swung open to reveal a nearly nude man standing there.

Eric had just woken up, mistakenly thinking it was Allen at the door. Remembering that he needed to make a phone call, he opened the door without a second thought.

Caroline had never had to wake a man up before and was caught off guard to see Eric standing there in nothing but boxers. Being petite, her gaze initially fell on Eric's muscular torso before trailing down, and she squeaked in surprise, quickly turning away while covering her blushing face with her hands.

Eric, who had been momentarily taken aback, couldn't help but laugh at her cute reaction. He turned to grab his clothes saying, "You come here first thing in the morning just to tease me. I must be really unlucky. I don't even know if I can make it up."

Caroline lightly stamped her foot, knowing Eric was joking, but couldn't help but defend herself. "I didn't! I just... I just came to bring you the newspaper."

Hearing the tremor in her voice, Eric realized she was shy and decided to ease off the teasing. He quickly got dressed and said, "Alright, you can turn around now."

Caroline had intended to run away but felt her cheeks were burning red as she feared she would be the subject of laughter if she ran into someone in her flustered state. Hearing Eric's remark, however, she still didn't want to turn around, keeping her back to him. "Eric, you go wash up. I'll call and order breakfast for you."

"Sure, thanks," Eric replied, walking toward the bathroom.

...

About ten minutes later, when Eric emerged from the bedroom, Caroline had vanished. He shook his head with a smile, feeling nostalgic for the innocence and shyness of a girl like her, which he knew was rare in Hollywood.

After arriving in Europe, Eric called London as planned, only to find that Caroline had come over the same day. He understood the girl's feelings for him, but the more he experienced her pure and genuine nature, the more he thought perhaps it would be best for her to return to her normal life. The world of Hollywood, filled with ambition and scheming, was not suitable for such an unpretentious girl. Bringing her into it would only put her at risk.

Lost in these thoughts, Eric presumed Caroline hadn't ordered breakfast for him. Just as he was about to call the restaurant, the hotel bellman rang the doorbell.

The German premiere of Jurassic Park had taken place a few days ago, while the Paris premiere was set for July 14. Eric had spent his days exploring Berlin's sights and attending various invitations at night.

Germany was the most developed country in Europe, with its economy once comparable to Japan's in the post-war period. If not for the Cold War, it might have been on par with Japan, now the world's second-largest economy. Even so, Germany's strength in this era made it the most powerful country in Europe, with its GDP equating to the combined total of the UK and France.

A thriving economy led to a significant capital influx. Though Germans didn't invest in industries around the world out of insecurity like the Japanese, they were keen on foreign investments. Due to unique tax incentives and Hollywood's rapid development, investing in Hollywood films had become a popular option for German investors.

To further stimulate film development, the German government exempted film investment funds from taxes. With personal income tax rates reaching 51%, if someone earned a million dollars without investing, they'd pay $510,000 in taxes. However, if the million were funneled into film production, that tax was waived. If this 1 million doubles the profit on the film and becomes 2 million US dollars, then after paying personal income tax, the remaining money is basically equivalent to exempting the original personal income tax. Moreover, even if the money does not double, but only earns a small part, it is equivalent to exempting part of the tax to a certain extent.

Fueled by this, many German investors threw considerable sums into Hollywood, even after the disappointing performances of Carolco Pictures' two films, Cliffhanger and Last Action Hero, which had predominantly funded through German film funds.

In a sense, Firefly's Jurassic Park contributed to the losses of these productions. Arnold Schwarzenegger's Last Action Hero was largely overshadowed by Jurassic Park. Nonetheless, when Eric arrived in Berlin, he was still highly sought after by various German film companies and investment funds. After Cliffhanger and Last Action Hero's failures, the Germans had learned to be more prudent; merely inviting major stars wasn't a guarantee of success. Identifying the right investment targets had become integral, and with Jurassic Park breaking global box office records, Firefly Entertainment made for an ideal investment opportunity.

During his time in Berlin, most of the invitations Eric received came from lobbying groups of German film funds. He began to ponder the scenario with the understanding that the average Hollywood blockbuster budget remained around $30 million, with advertising budgets not excessively high. Given the average output of twenty films a year by these major studios, Firefly's internal cash flow could comfortably absorb that expenditure without relying on external film funding.

However, with the advent of big-budget films, the average advertising budget could easily surge past $100 million. While Eric remained confident in Firefly's ability to handle such financial demands by that time, it still wouldn't be wise. Over the years, Eric had come to understand that Hollywood's greatest advantage was leveraging others' money to create films while keeping the profits for itself.

Due to the significant risks associated with film investment, external investors often didn't earn as much as expected. If investments in Hollywood yielded a 10% to 15% profit annually, it was deemed a fantastic return.

Of course, not every studio, like Firefly, enjoyed Eric's unique insights. Film investment often involved wins and losses, and Hollywood had developed internal revenue-sharing rules to retain most profits while passing on losses to external investors. However, this rule didn't apply to Firefly. For others, film production was akin to gambling, while Eric, who could see the dice's true value, was exceptional.

Take Jurassic Park as an example; for a film grossing $1 billion worldwide, if external investors were brought in and later told they had not turned a profit, it would not be a surprise if they went up in arms.

Overall, the operational structure of most Hollywood films, which involved many investors, aimed to reduce investment risks. However, for Firefly, much of that risk diminished in front of Eric, falling well within the realm of what Firefly could manage alone. At this juncture, to operate under Hollywood's rules was less about sharing risk and more about sharing profits.

...

Even after finishing breakfast, Eric hadn't developed any feasible plans for operation, and a simple breakfast had somehow occupied him until after 9 o'clock.

Coincidentally, it was Monday, and the box office for Jurassic Park that weekend hadn't deviated from the predicted figures. However, the performance of Deep Impact in its opening weekend exceeded Eric's expectations, raking in over $47 million in North America, with projections suggesting it would likely cross the $70 million mark in its first week, effectively covering costs. Meanwhile, Pixar's 3D animated film A Bug's Life was also nearing $100 million in total North American box office receipts.

As he was finishing the newspaper in hand, the doorbell rang again. Eric opened the door to find Allen standing there.

"You came at the right time. A few days ago, I asked Disney to gather some information on promising computer animation studios. Do you have time today to check on their progress? If it's looking good, send me the details."

"Sure, I'll take care of it," Allen replied, jotting it down.

Eric shook his head, then suddenly added, "Also, don't ask Caroline to do this sort of thing. She's too shy for it, and it was a bit uncomfortable just now."

Allen seemed to understand something, offering a teasing smile. "Sorry about that, Eric. I didn't think about it."

"Oh, by the way, is there anything else?"

"Ms. Wilson asked me to see if you're planning to go out today," Allen said with a hint of mischief.

Eric glanced at his watch and nodded, "Alright, I'll head down now."

"She's waiting for you downstairs," Allen added before turning to leave.

Eric had already set his agenda for the day, deciding to visit Museum Island in Berlin. He returned to his room to change his shoes, tidied up a bit, and then stepped out.

...

Caroline was seated in the lobby of the hotel, flipping through a magazine, appearing perfectly composed. Yet, when she saw Eric, a blush crept onto her cheeks, evoking a strong urge in Eric to give her a playful pinch, a thought that had lingered in his mind several times.

"Shall we go?" Despite the mischievous thoughts, Eric remained courteous as he greeted her and led her outside.

At that point, Berlin wasn't particularly flourishing. The division from the Cold War had left much of the city controlled by the Soviets, and at that time, the capital had moved to Bonn in the west. However, the reunification in 1990 led to a consensus to relocate the capital back to Berlin, where rapid infrastructure improvements were made due to West Germany's robust economic capacity.

Berlin boasted a highly developed public transportation system, as did the entirety of Germany. Both Eric and Caroline walked side by side to the subway station without a car, accompanied by two bodyguards. They soon took the subway to the famed Museum Island.

Though the name "Museum Island" may initially sound peculiar, it referred to a cluster of institutions comprised of the Berlin Museum, the National Gallery, and other museums. Eric had no particular fascination with German culture. The long period of turmoil in Europe had left Germany with few boast-worthy cultural landmarks. Many could enthusiastically recount cultural heritage from countries like England, France, Italy, or Greece. But mention Germany, and most would think of Hitler - hardly a proud part of history.

Despite Caroline being extraordinarily shy, her knowledge was impressive. She often shared facts that even museum guides might miss, leading Eric to inquire further. Her responses left him neither shocked nor surprised. He felt a sense of admiration and envy; despite having retained memories from a past life, he lacked the gift of perfect recall, and with time, the clarity of some memories had begun to fade.

*****

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