Chapter 144: Offer

In Richmond, northeast of San Francisco Bay, Pixar's office is nestled in an unassuming office building.

Simon arrived at Pixar headquarters at two in the afternoon, and though Steve Jobs was absent, Ed Catmull, the president of Pixar, welcomed him. The middle-aged man with glasses and a beard was the main developer of Pixar's animation software and rendering tools.

Before arriving in San Francisco, Simon had heard that due to financial constraints, Jobs had recently laid off some of Pixar's staff, leaving fewer than 20 employees in this office building.

The absence of Jobs didn't bother Simon; he spent the afternoon examining Pixar's array of technological achievements, including John Lasseter's newly developed "Tin Toy," a 3D animated short film that not only won an Oscar for Best Animated Short Film but also inspired "Toy Story."

As he was about to leave at the end of the day, Simon told Ed Catmull, "Ed, I suggested to Jobs last year that I was interested in buying this company, and that offer still stands. Let him know that if he ever decides to sell Pixar, he can contact me at any time."

After a pleasant afternoon, Ed Catmull, feeling Simon's genuine interest in Pixar's technology, responded, "Simon, do you really have to buy our company? If you're interested in just investing, Steve would probably be very open to that, and we could help persuade him."

"This is about control," Simon shook his head. "I think Jobs doesn't want to repeat his experience at Apple, and I feel the same way. Ed, you must understand, I'm interested in using Pixar's technology to produce 3D animations and develop movie-related CG effects, while Jobs wants to produce computers designed for animation. Our visions for operation completely clash."

After this conversation, Simon and Ed Catmull shook hands, and Simon left Pixar headquarters with Jennifer.

"Instinct" was set to be shot mainly in San Francisco. After spending two days confirming filming locations with the crew and Brian De Palma, who had since returned to Los Angeles, Simon visited Silicon Graphics headquarters in Silicon Valley in the morning and toured Pixar in the afternoon. Tomorrow, he was scheduled to fly to Park City, Utah, to attend the opening ceremony of this year's Sundance Film Festival.

"Run Lola Run" had made a splash at Sundance the previous year with Robert Redford's strong support, and Redford had personally invited Simon, making it impossible for him not to show support.

At the Hilton Hotel in downtown San Francisco, Jennifer, carrying a pot of coffee, returned to the living room after Neil Bennett had swept the suite for bugs.

While helping Neil pack up his equipment, Jennifer poured Simon a coffee and sat down beside him, joking, "This feels a bit like OCD."

"OCD is better than being bugged. Just thinking about those little devices in the Plaza Hotel suite makes me uncomfortable," Simon replied, setting aside his documents and patting the seat beside him for Jennifer, who blushed and declined, "No, I'm not a kitten. And you should call my dad."

Smiling, Simon picked up the phone and dialed the Rebelde household in New York, where it was already past eight in the evening. He discussed with James the situation with New World Entertainment, whose stock price had climbed from yesterday's high of $15 to close at $16.75 today, pushing its market value over $400 million. Simon, unable to afford the acquisition now, decided to divest all of Westeros Corporation's shares in New World Entertainment.

His main goal in acquiring New World Entertainment was to gain control of Marvel, and since everyone seemed eager to profit from the inflated stock, the wisest move was to pull out. If he held on to his 7% stake, it would only keep the company's stock prices robust, potentially helping it through tough times.

Since Westeros Corporation held unrestricted floating shares, the divestment wasn't constrained by SEC regulations.

The next morning, after publicly announcing the divestment as per SEC regulations, Simon immediately began selling off the shares.

Upon arriving in Park City, Utah, Jennifer, who had been busy in New York arranging their Fifth Avenue apartment, was already there, having rented an apartment for them. She was mainly back on the West Coast to accompany Simon to the upcoming 45th Golden Globe Awards ceremony.

The opening ceremony of Sundance Film Festival began at 1 PM. Thanks to Redford's arrangements, Simon and his party managed to squeeze into the packed Egyptian Theatre in Park City, which was noticeably busier than the previous year due to the success of "Run Lola Run." This year, the number of films submitted to the festival had doubled, and thanks to generous sponsors, the number of screening venues had increased from three to ten.

Following the opening ceremony, this year's opening film was significant.

"The Unbearable Lightness of Being," adapted from Milan Kundera's novel and starring

 Daniel Day-Lewis and Juliette Binoche, known as "The Love of Prague," was set for release on February 5 by Orion. Its producer, Saul Zaentz, who held the rights to "The Lord of the Rings," had caught Simon's attention.

After the opening ceremony, everyone headed to the Sundance Institute headquarters for the official opening party. There, Redford introduced Simon to Saul Zaentz, a prominent Hollywood producer with a history of successful films, including "One Flew Over the Cuckoo's Nest" and "Amadeus."

At the party, after introductions, Zaentz said, "Simon, I know you're interested in 'The Lord of the Rings,' and I've heard you've acquired 'The Hobbit.' However, unless you can present a viable production plan, I'm not willing to hand over the rights to 'The Lord of the Rings.'"

Simon replied, "Without the rights, I can't start developing the project."

"You could start with 'The Hobbit,'" Zaentz suggested.

"I'd prefer to begin with 'The Lord of the Rings' series," Simon said, then after a pause, looked earnestly at Zaentz and offered, "To show my seriousness, how about $10 million?"

The party was noisy, but Zaentz heard the offer clearly.

$10 million?

Hollywood's top script or novel rights typically went for around $1 million; Simon was offering ten times the market rate.

Taken aback by the unprecedented offer, Zaentz felt tempted to show anger but was mostly just surprised and incredulous.

No one in Hollywood had ever paid $10 million for the rights to a novel, as that amount could fund a significant film on its own.

Zaentz, aware of Simon's previous high-profile acquisition of "Charlie's Angels," knew the price was beyond normal. "Charlie's Angels" involved rights to over a hundred TV episodes, a tangible asset, while "The Lord of the Rings" was merely potential film rights.

After a long hesitation, Zaentz responded, "Simon, I need to think about it."

"Of course," Simon nodded. "But, Saul, I hope to have your answer by the end of this weekend."

"That's too soon," Zaentz replied.

"I don't want to wait too long," Simon insisted.

Zaentz paused, then added, "Simon, since you have 'The Hobbit,' you must know it includes a clause for a fixed share of the profits—7.5% of the net revenue from films and TV goes to the Tolkien Estate."

"I'm aware," Simon acknowledged.

"If you want the rights, I need a similar profit-sharing agreement—at least 5%," Zaentz proposed.

Simon firmly rejected, "Saul, I'm offering $10 million upfront; I can't also give you a percentage. Perhaps you think, since Simon Westeros is willing to pay such a premium, he wouldn't mind paying more. But I can assure you, it's $10 million, and only this weekend. After that, I'll reconsider everything from scratch. Also, if you agree, you'll need to sign a non-disclosure agreement to never reveal our transaction terms."

Zaentz, weighing his options, knew cooperating with other studios might net him about $1 million with easier profit-sharing terms. But even a 5% profit share from a studio earning over $200 million would be comparable to Simon's current offer.

Considering Hollywood's creative accounting, achieving a return comparable to Simon's $10 million through profit-sharing seemed even more unlikely.

After a moment of silence, Zaentz raised his glass to Simon, "Before I leave Park City, you'll have my answer."

Simon handed Zaentz a business card with the address of his resort written on it, expressing hope for good news.

Jennifer, who had been listening quietly, linked her arm with Simon's and smiled, "A million dollars, that's the price of a top-tier mansion on Fifth Avenue."

Thinking of the protracted lawsuits involving New Line Cinema's notorious defaults, which had affected Peter Jackson, Zaentz, and the Tolkien Estate, Simon mused that securing the rights to "The Lord of the Rings" for $10 million would be a bargain.

Reflecting on recent difficulties, he pondered the idea of seeing himself as a potential profit source, wondering if it might simplify some matters.

Jennifer, sensing Simon's subtle frustration, reassured him with a gentle touch, "You're not a fat sheep, Simon. Those who see you as one will soon realize their folly."

"That's what I'm worried about," Simon replied.

"Why?" Jennifer asked, puzzled.

Before Simon could explain, Robert Redford approached, inquiring about the negotiations.

Hollywood rumors spread quickly, and Simon's interest in "The Lord of the Rings" was hardly a secret.

Responding to Redford, Simon explained that Zaentz would consider it.

"Many of Hollywood

's classic novel adaptations require patience; rushing won't help," Redford consoled, then suggested, "Simon, we've received a lot of scripts recently, some quite good. I was thinking, could you invest in a few? Even one would help. They're talented directors and writers, just like you, lacking only opportunity. And these projects wouldn't be costly, perhaps two to three million each."

Intrigued by the prospect of producing interesting independent films and fostering talent within Daenerys Productions, Simon eagerly agreed, "I'm here all weekend, Bob. Have the scripts sent to me, and I'll choose a few to invest in."

Assured of his interest, Redford promised to deliver the scripts the next day and offered help with distribution if needed.

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