On February 23rd, the day after Simon's understated 25th birthday, the most important annual report within the Westeros system was released.
For the entire year of 1992, Daenerys Entertainment Group achieved total revenues of $12.7 billion, a year-over-year increase of 37%. The company's net profit for the year was $710 million, up a staggering 260% from $270 million in 1991. Additionally, Daenerys Entertainment Group's debt load significantly decreased, dropping from $7.8 billion to $7.1 billion.
The $12.7 billion in annual revenue solidified Daenerys Entertainment's position as the leading media conglomerate in North America and globally.
Such impressive financials were primarily driven by the overall growth in Daenerys Entertainment's various businesses, including film and television production, theme parks, and consumer merchandise, with the robust film business acting as a major growth engine.
Although the net profit of $710 million resulted in a net profit margin of only 5.6%, it still surpassed the margins of other Hollywood studios.
Moreover, as with the 1991 fiscal year, the relatively low profit margin was mainly due to significant funds being allocated toward debt reduction and corporate expansion.
If Simon wished, Daenerys Entertainment's overall debt could easily be reduced to below $7 billion.
However, Simon chose not to do this.
Maintaining a moderate level of debt helps Daenerys Entertainment offset a significant portion of its taxes. Additionally, as a privately held company, this debt serves as the best channel for Daenerys Entertainment to maintain its relationships with various capital markets.
Daenerys Entertainment's prominence has been steadily rising, but the foundations of the entire Westeros system are not yet entirely solid.
In such times, caution is paramount.
In preparation for the planned IPO next year, Daenerys Entertainment promptly published its financial data on the Egret portal, sparking widespread coverage and discussion in traditional media.
The $12.7 billion in revenue not only exceeded Time Warner's $11.9 billion revenue for the previous fiscal year but also left the other major Hollywood studios far behind.
For instance, Columbia Pictures, controlled by Sony, reported revenues of just $2.6 billion for the past four quarters, only one-fifth the size of Daenerys Entertainment's revenue. Other studios like Fox, Paramount, and Disney were similarly outpaced.
Amid the external buzz, Daenerys Entertainment reiterated its plans for an IPO.
The targeted date for the stock listing is set for next summer. However, with the new financial data released, preparations for the IPO have already begun over a year in advance.
With a revenue scale exceeding $10 billion, Daenerys Entertainment ranks among the top 30 American companies according to the latest Fortune 500 data. Moreover, the peers in this bracket are all long-established industrial giants. Although these companies have deeper legacies and foundations, they cannot match the growth momentum of the vibrant Daenerys Entertainment.
Following the IPO announcement, the media began speculating about the current valuation of Daenerys Entertainment.
Last year, Forbes estimated Simon's personal wealth by valuing Daenerys Entertainment at $30 billion. Based on the latest financial data for 1992, a $30 billion valuation might seem high, but it is not unrealistic.
If Daenerys Entertainment had not invested heavily in expansion and debt reduction, its net profit margin could easily be over 15%.
Given the $12.7 billion in revenue, a 15% net profit margin would translate to an annual net profit of $1.9 billion.
With $1.9 billion in net profit, the $30 billion valuation would correspond to a price-to-earnings (P/E) ratio of around 15.
For a company with a 37% annual revenue growth rate, a P/E ratio of 15 at IPO is quite conservative. Since the recent recovery of the American stock market, both the New York Stock Exchange and the Nasdaq have seen average P/E ratios exceeding 15.
Even so, a company with a $30 billion valuation going public would undoubtedly be the largest IPO in North America in the past decade.
At Daenerys Studios.
Over the past two days, the senior management of the group has been holding meetings to review the newly released financial report and to make adjustments to the company's plans and development strategy for the upcoming year.
After two years of integration, Daenerys Entertainment has essentially digested the former MCA.
Since the IPO is planned for mid-next year, Simon aims to present a financial report that truly reflects Daenerys Entertainment's profitability capabilities.
Maximizing the company's financial performance before going public is a common strategy many companies use during their IPO process.
At 5 PM, the two-day meeting concluded, but Simon did not leave work immediately.
Returning to his office, he found Ella Deutschman waiting for him.
The 43rd Berlin International Film Festival had officially closed on February 22nd, and Daenerys Entertainment's production "The Wedding Banquet" won the Golden Bear award, just as it had in the original timeline.
This time, however, "The Wedding Banquet" was the sole recipient of the award, unlike the original history where it shared the prize with another Chinese film, "Woman Sesame Oil Maker."
Daenerys Entertainment does not have a habit of sharing awards with others.
Because "The Wedding Banquet" was a Highgate Films production, media naturally linked Simon's presence at the festival's opening to the film's win, suggesting that there were behind-the-scenes manipulations at the Berlin Film Festival.
However, with the award already announced and "The Wedding Banquet" being of high quality, such controversies would quickly fade. Years later, the only thing people would remember is that "The Wedding Banquet" won the 1993 Berlin International Film Festival Golden Bear, epitomizing the "victors write history" adage.
As for whether there was any behind-the-scenes maneuvering?
Of course, there was.
Highgate Films has become the go-to company for niche independent and arthouse films in recent years. Interestingly, the jury members of Europe's top film festivals often come from this sector. Therefore, while festival organizers might struggle to influence these somewhat established jurors, Highgate Films can.
Unless they have no interest in the Oscars, Cannes, Venice, or Berlin, these jurors will inevitably consider their future prospects with Daenerys Entertainment when casting their votes.
In the original timeline, Miramax's dominance at the Oscars and other festivals was largely due to this same factor.
Currently, Highgate Films is even more dominant than Miramax ever was.
Therefore, without even needing to resort to overt manipulation, jurors naturally favor Daenerys Entertainment's films, provided they are not entirely devoid of ambition.
Through certain close-knit networks, Daenerys Entertainment can also access typically confidential jury voting information.
As a result:
Who supports, who opposes?
All becomes clear!
Of course, the foundation of all this is that Highgate Films' entries must be of high quality; otherwise, Simon wouldn't allow the company's reputation to be tarnished.
Furthermore, having won this year's Golden Bear, Highgate Films plans to step back from competing for the top awards at major festivals for the next couple of years.
Turning a film festival into your private playground only ensures no one else wants to play with you anymore.
With the Golden Bear secured, the Highgate Films team has already started promoting "The Wedding Banquet," scheduled for a North American release on March 5th.
The interval between winning the award on February 22nd and the release on March 5th is just two weeks.
This tight schedule was only finalized on February 22nd, the day "The Wedding Banquet" won the Golden Bear.
Even with strong confidence, no one could guarantee a win before the awards were announced. If the film had not won, they would have had to adjust their distribution strategy, and an early March release might not have been suitable.
Although the initial release is limited to about 200 screens, it still demonstrates Daenerys Entertainment's increasing distribution prowess.
For other second or third-tier distributors, the process of winning an award, acquiring the rights, scheduling the release, launching the promotional campaign, and finally hitting theaters could take six months. By then, the Golden Bear's buzz would have faded.
Simon was already aware of these plans on the day the Berlin Film Festival closed. Today, he and Deutschman discussed issues regarding Working Title Films.
Having failed to find a reliable financial backer, Working Title Films had remained a shell company over the years, even less active than Miramax, which Simon recently put out of its misery.
Working Title's partners, Tim Bevan and Sarah Radclyffe, didn't even have a proper office.
For years, their modus operandi involved scouting scripts, scrambling for funds, and getting deeply involved in every aspect of production and distribution, usually managing to produce only one film every year or two. As a result, their earnings were minimal, barely enough to get by.
Simon took an interest in Tim Bevan's recommended script, "Romeo Bleeds," and subsequently had Ella Deutschman sign both Bevan and Radclyffe to contracts, giving them a sense of belonging at last.
As for Working Title Films, Simon did not plan to develop it as a separate label. Therefore, both Bevan and Radclyffe were contracted as regular producers under Highgate Films.
In the entertainment industry, new production companies emerge and dissolve every year, and sometimes several companies are formed around a single movie. Thus, Bevan and Radclyffe didn't have much attachment to the Working Title Films brand.
Subsequently, among the scripts provided by Bevan and Radclyffe, Simon found "Four Weddings and a Funeral."
Given the small size of the UK film industry, it wasn't surprising that this script, initially overlooked in the original timeline, ended up in their hands again
. Additionally, Simon also came across another script titled "Dead Man Walking."
"Dead Man Walking" is based on a true story about a nun, Sister Helen, who, through her correspondence with a death row inmate, uncovers the truth about his case.
In the original timeline, "Dead Man Walking" starred Tim Robbins and became an Oscar contender in 1996, winning Susan Sarandon the Best Actress award.
Of course, the film also performed well at the box office.
Simon had no prior memory of "Romeo Bleeds," but finding "Four Weddings and a Funeral" and "Dead Man Walking" among Tim Bevan and Sarah Radclyffe's scripts confirmed their keen eye for talent. Working Title Films' past successes at the box office and in awards in the original timeline also testified to their competence.
Signing these two to Daenerys Entertainment was actually more valuable than acquiring a couple of hit scripts.
Despite discovering "Four Weddings and a Funeral" and "Dead Man Walking," Simon did not immediately greenlight all these projects.
Including "Romeo Bleeds" and "Four Weddings and a Funeral," Simon selected three films from the scripts they owned, adding a romance titled "True Love," and handed them over to Bevan and Radclyffe.
"Dead Man Walking" would be produced later.
Among the three films, the uncertainty surrounding "Romeo Bleeds" was high, "True Love" was more of an added bonus, but "Four Weddings and a Funeral" was key.
Of course, Simon did not disclose these priorities to others.
Ella Deutschman was most focused on "Romeo Bleeds."
Quentin Tarantino's previous film, "Reservoir Dogs," made on a $1.5 million budget, had grossed over $40 million worldwide thanks to Highgate Films' superior distribution strategy, unlike the original timeline where it failed due to poor distribution.
Thus, Tarantino's next project was highly anticipated within Highgate Films.
The delay in starting his second film was primarily due to the lack of a suitable script.
Tarantino himself wasn't too satisfied with "True Romance." However, upon seeing "Romeo Bleeds," he showed some interest, though he insisted on revising the script to align with his unique style.
Since Simon had personally selected the project, any proposed changes required his approval.
Simon had no objections, as he too felt that "Romeo Bleeds" lacked Tarantino's signature dialogue style.
While more focused on "Romeo Bleeds," Deutschman, trusting Simon's judgment, also paid attention to "Four Weddings and a Funeral" and "True Love," analyzing their strengths and weaknesses.
"Four Weddings and a Funeral" exuded classic British humor and self-deprecation. While American audiences tend to be xenophobic, they generally appreciate British films of this nature. A few years ago, "A Fish Called Wanda" succeeded for similar reasons.
As for "True Love," its appeal lay in its extreme setting.
The story unfolds in the Arctic Circle.
Simon planned significant modifications to the "True Love" script, including changes to the characters and plot, to strip away its pretentious European arthouse style and transform it into a more commercially viable romance.
After preliminary estimates, the cost to produce "True Love" was surprisingly the highest among the three due to the challenges of Arctic filming and the need for a strong production team, with the budget potentially reaching $20 million.
Given Quentin Tarantino's rising prominence as a unique, stylish director, "Romeo Bleeds" was also unlikely to be a low-budget film at $1.5 million. This time, the budget was set at $15 million.
Lastly, "Four Weddings and a Funeral" had a relatively modest budget of $5 million.
Despite having the highest expectations for "Four Weddings and a Funeral," Simon did not plan to upgrade its production scale.
The discussion about the two producers and the three film projects lasted an hour. At 6 PM, after sending Deutschman off, Simon's assistant, Alison Knowles, entered the office.
With Jennifer needing to reduce her workload due to pregnancy, Simon decided to bring Alison, originally one of the D girls, as his second assistant.
Although initially a maid, Alison had spent recent years assisting Janet with various affairs for the Westeros family, effectively acting as Janet's assistant. Transitioning to Simon's second assistant role, she adapted quickly within a few days.
This did not surprise Simon.
The women personally selected by Janet—initially the A, B, C, and D girls, and subsequently the housekeeper team—were not only beautiful but also far from being mere ornaments.
_________________________
[Check out my Patreon for +200 additional chapters in all my fanfics! $5 for all!!] [www.p@treon.com/INNIT]