In the Marvel Entertainment conference room, Matthew and Helen Herman met with Kevin Feige. Kevin introduced them to Avi Arad, the current Chairman of the Board and Co-Chief Creative Officer of Marvel Entertainment, and Isaac Perlmutter, the Chief Executive Officer.
These two individuals held decisive influence over Marvel's operations.
After a few polite exchanges, the conversation quickly shifted to the main topic.
Isaac Perlmutter tentatively began, "Kevin told me you're interested in investing in 'Iron Man.' I have a proposal."
Helen Herman glanced at Matthew without speaking. Since Matthew was here, he would take the lead. She only needed to speak if it was absolutely necessary.
Matthew, reclining comfortably on the wide sofa, said, "Please go ahead."
"We'd like you to take on the lead role," Isaac Perlmutter continued, still hopeful, "and also invest in the project, possibly taking on a producer role as well."
"And my fee?" Matthew asked directly.
Isaac Perlmutter hesitated for a moment before Avi Arad jumped in, "Your fee would be factored into your investment."
Matthew nodded slightly. This aligned with what he had proposed. He exchanged a glance with Helen Herman and then stated the figure they had previously discussed. "I'm willing to accept that. However..."
Given that this was a business negotiation, he didn't hold back. "I want a fee of 20+20, with the base fee counted as part of my investment; or another option: a third of the production budget to be considered as my fee and included in my investment."
He didn't lower his demands.
Hearing Matthew's audacious conditions, Avi Arad subtly shook his head at Isaac Perlmutter.
Isaac Perlmutter frowned slightly. 'Iron Man' needed actual production funds, not someone taking a big slice of the budget before the project even started.
Kevin Feige glanced at Isaac Perlmutter. He had previously warned him that Matthew Horner was not someone who would drop his fee for a superhero role. Perlmutter had insisted on trying, only to be rebuffed.
To get 'Iron Man' off the ground, they needed to secure the remaining $60 million in the budget.
While $60 million wasn't much by Hollywood standards, especially for one of the Big Six studios, it was a significant sum for Marvel Entertainment, which was just dipping its toes into film production. Unless they mortgaged some popular superhero rights, it would be tough to raise this money.
Their negotiations with Paramount Pictures were also rocky. Paramount, the distributor, wanted to see a sample reel before committing to the scale of their distribution for 'Iron Man.'
The conference room fell silent for a moment. After stating his terms, Matthew remained quiet. Unlike taking on the role of Iron Man, he was very interested in investing in Marvel's superhero films. However, he couldn't afford to appear too eager or impatient in these initial talks.
Some things can't be solved by being overly proactive; too much eagerness could lead to future disadvantages.
Marvel's superhero films were immensely successful, or else they wouldn't have produced so many. But he knew that the people across the table didn't realize that yet.
According to Helen Herman's investigations, Marvel's top brass were essentially gambling. Hollywood didn't have high hopes for them, and Marvel itself wasn't fully confident.
If they were truly confident, they would have already mortgaged some rights to secure a loan and wouldn't be scrambling to raise funds from various sources for production.
Raising funds this way undoubtedly reduced Marvel's own risk, giving their executives a fallback plan.
As Helen Herman had analyzed through various channels, Marvel needed funding for the 'Iron Man' project. Thus, the silence in the room lasted less than thirty seconds before Avi Arad broke it.
"Matthew, even if you don't play Tony Stark," he said slowly, "it doesn't preclude you from investing in the project."
"Hmm..." Matthew furrowed his brows, appearing to be in a dilemma.
Kevin Feige glanced between Matthew, Avi Arad, and Isaac Perlmutter, choosing not to speak. He needed the production funds to be secured quickly. Currently, his position at Marvel wasn't very high; both Avi Arad and Isaac Perlmutter were his superiors.
However, he understood one thing clearly: the influence of the comic books was limited. Marvel's future wasn't in the comics. As long as the planned series of films succeeded, the power dynamics at Marvel would change.
Since Matthew wasn't going to play the lead, there was no need for him to speak up. He only wanted the money.
Negotiating the finances was up to Avi Arad and Isaac Perlmutter. If the negotiations fell through, they would be the ones to bear the blame.
After a moment of pondering, Matthew finally asked, "How much of a funding gap does 'Iron Man' have?"
With Paramount planning to release 'Iron Man' in the summer of 2008, they might find other funding sources. But Avi Arad and Isaac Perlmutter couldn't afford to wait too long. If they couldn't secure other funds, wouldn't the initial investment be wasted?
Isaac Perlmutter exchanged a look with Avi Arad. Compared to taking out a bank loan or seeking funds elsewhere, Matthew Horner might be the better option.
"As for the funding gap..." Isaac Perlmutter, wary of scaring off the potential investor, said, "We're short by $40 million."
"So much?" Matthew's frown deepened.
He had considerable wealth and was on track to become a billionaire soon, but coming up with $40 million, even if in installments, was a significant burden.
Helen Herman turned to look at Matthew. She knew that aside from purchasing Horner Manor, Matthew hadn't squandered his earnings. A significant portion had gone into buying Apple stock, and the remaining cash, including the first installment of his $6 million fee for 'I Am Legend,' totaled about $20 million.
Matthew thought for a moment and then asked, "I'd like to know, if I become an investor, what kind of returns can I expect from the film?"
In Hollywood, film investment never equates to proportional returns. Many investors only get a share of the box office profits.
As expected, Isaac Perlmutter replied, "You'd receive a share of the box office profits proportional to your investment."
Upon hearing this, Helen Herman subtly shook a finger at Matthew, signaling her disagreement.
Matthew saw it clearly. Even without Helen's reminder, he wouldn't agree to this. He outright rejected the offer, "That's not acceptable. I'm not an outsider investing in this industry."
He emphasized, "Don't forget, I'm from Hollywood!"
Isaac Perlmutter looked at Avi Arad, who remained silent for the moment.
Kevin Feige smirked internally. From previous interactions, he knew that Matthew Horner was not only difficult to deal with but also highly profit-driven.
Trying to secure millions of dollars from a Hollywood star like Matthew Horner with just a promise of box office profits was impossible.
Matthew wasn't a fool.
Without waiting for Isaac Perlmutter and Avi Arad to respond, Matthew continued, "Need I remind you of my professional background and my standing in the industry?"
Helen Herman, perfectly synchronized with Matthew, interjected, "Matthew is a member of the $20 million club, wielding significant influence and appeal. Not to mention his extensive network within the film industry. Any association with him generates substantial media attention."
She stressed, "With Matthew involved, the promotional advantages for 'Iron Man' would be enormous. I'm sure you've considered that."
Isaac Perlmutter and Avi Arad had indeed considered this, which is why they were having this meeting. They needed Matthew's investment because they understood that his contribution wasn't just financial.
If it were just about the money, there wouldn't be such urgency in meeting him.
Kevin Feige's eyes darted from Isaac Perlmutter to Avi Arad. As a producer, he leaned towards accepting Matthew's investment. The promotional opportunities tied to Matthew Horner were vast.
Matthew's personal blog alone was an excellent promotional platform, being one of the most famous and trafficked blogs in the industry.
As Helen Herman finished, Matthew added, "You mentioned a $40 million funding gap? I can invest $40 million in 'Iron Man.'"
Isaac Perlmutter and Avi Arad exchanged a look of relief, although they hid it well.
Isaac Perlmutter, in particular, regretted not claiming the gap was $60 million instead.
However, they both knew that Matthew wasn't done. His conditions were yet to be stated.
This is how business negotiations work. Matthew, pushing the envelope, continued, "I want one of the top three insurance companies in the U.S. to be the project's third-party guarantor and PricewaterhouseCoopers as the third-party financial auditor."
Investing in films isn't just about throwing money around; there are countless ways to be swindled.
"And also..." Matthew added, one condition after another, "As an investor, I want a share of the film's overall revenue proportional to my investment. Furthermore, for the next twenty..."
Mid-sentence, he corrected himself, "For the next twenty Marvel superhero films, I want the right to invest with the same proportional share as in 'Iron Man.'"
"We can't accept those terms!" Isaac Perlmutter protested immediately.
Avi Arad concurred, "Your conditions are too excessive."
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