Chapter 150: Cooperation with Hasbro Company
After Random House learned of Liu Hongmin’s idea, they immediately held a meeting to start research. They investigated Hasbro and evaluated the profit prospects of Transformers, and they all felt that this was a very profitable business.
So, they replied to Liu Hongmin that they could invite Hasbro to start a three-party negotiation.
In May 1984, delegations from Random House and Hasbro rushed to Hong Kong and stayed at the Peninsula Hotel.
Liu Hongmin also took Wang Yaowei and the translator hired by the toy factory to start a three-party meeting in the small conference room of the Peninsula Hotel.
Hasbro is very dissatisfied with Random House's involvement, but there is nothing they can do. However, they still refused to give up and said to Liu Hongmin at the beginning of the meeting: "We still want to buy the copyright of Transformers, as long as you set a price."
The representative of Random House looked at Liu Hongmin , Liu Hongmin signaled them to be calm and calm. Then he said to Hasbro: "One hundred billion U.S. dollars."
"What?" The representative of Hasbro was horrified. He stood up and looked at Liu Hongmin in disbelief, "How dare you say such a thing?" The price? There is no sincerity in negotiating."
Random House representative said: "You asked Liu to make a price? Do you want to go back on it now?"
" The rights to Transformers are not worth $100 billion!”
Liu Hongmin said with a smile: "Copyright does not have an actual price, so it is okay to say more or less. In my heart, it is worth this price, and even more."
Children Bao Company representatives calmed down their anger. They saw that Liu Hongmin would not sell the copyright to them.
The representative of Random House said: "Since you two have differences, let's talk about our three-party cooperation."
Haibro said without giving up: "We still want to think about it. To get the copyright of Transformers."
Liu Hongmin spread his hands: "I can give you 10% of the copyright, but I need the channels of Haibao Company."
"This is impossible, at least. 50% of the copyright."
Liu Hongmin shook his head, "We are a three-party cooperation, and I must ensure that 60% of the copyright is in hand. All operations of Transformers must be based on our opinions. You guys, I have a comprehensive development plan for Transformers."
Random House asked: "What is the plan?"
Liu Hongmin did not hide it, "First of all, it is the comic animation plan. I'm already working on it. The first animated film of Transformers will be completed soon."
The two sides looked at each other and realized that Transformers is indeed suitable for animation. As long as the cartoon comes out, it can completely promote each other with the toys. Not only can it save publicity costs, but it may also make a fortune.
If the story of the cartoon is made into a comic and then sold to the world through Random House, a three-pronged situation can be formed. From this point of view, Liu Hongmin does have a development plan for Transformers. Even if it is a first draft, it is enough to increase the value of Transformers copyright.
The representative of Hasbro said: "Then we want 30% of the copyright!"
The representative of Random House said dissatisfied: "Don't be too greedy. Without us, your comics would be and animation distribution will be difficult."
"You are not the only bookseller, Random House."
"But we are the number one bookseller."
Random House. The bookstore representative was very confident in what he said. He warned the Hasbro representative, "Please don't forget that without us, you and Liu would not be able to reach cooperation at all."
The Hasbro representative frowned, but had to Acknowledge that the Random House representative is telling the truth.
“25%, no less!” After getting 15% of the copyright, the Random House representative could barely accept it. However, Liu Hongmin will not give these copyrights to Random House in vain.
"Liu, what do you think?"
The representative of Hasbro Company looked at Liu Hongmin. Now Liu Hongmin has taken the initiative. If he disagrees, Hasbro Company may be kicked out.
Liu Hongmin nodded, "25% for Hasbro and 15% for Random House. This ratio is still acceptable. However, there is no free lunch in the world. What can you pay to get these shares?"
Representative of Hasbro: "We can provide toy sales channels around the world."
"Not enough!" Liu Hongmin said: "Even if we use the channels of Random House, we can also transform the King Kong is promoted to the whole world."
The Random House representative's eyes lit up and he said, "This is a good idea. I think we can discuss it."
The Haibao representative suddenly felt weak." So what do you want to get?"
Liu Hongmin said: "In addition to channels, Haibo Company will form a department, or the three of us will form a joint venture to operate Transformers."
< br>Hasbro and Random House looked at each other and asked, "How to distribute the shares?"
Liu Hongmin said: "It will be distributed according to the proportion of our copyright ownership. We account for 60% and Hasbro 25% , Random House holds 15%. We invest in the copyright, Haibao invests in the toy sales channel plus US$10 million, and Random House invests in the book sales channel plus US$10 million.”
"What about production?"
"The production of toys is still carried out by my toy factory, and the purchase price is fixed at 20% of the selling price. The comics can be printed by Random House's printing factory, and the printing fees are paid according to the market price. The animations are provided by me, and the cost is based on sales ”
Representatives from the two parties immediately calculated, and the income from animation and comics could not be calculated for the time being. For toys, Hasbro gets 20% of the sale price, and Random House gets 12%. If each Transformer costs $50, and annual sales are 10 million, 20% is $100 million, and 12% is $60 million.
If animation and comics are included, Random House’s revenue will be nearly 100 million US dollars.
Although Liu Hongmin will earn more, neither party can give up such huge benefits.
"Liu, you seem to have paid nothing!"
The representative of Haibao Company was a little unwilling. Liu Hongmin had not done anything, so he wanted to share most of the profits.
Liu Hongmin spread her hands and said, "I produced the toys, I produced the animated cartoons, and the copyright is mine. Haven't I paid enough?"
The representative of Random House also had some questions Jealousy, "But what about other profits? If we have other plans, should they be counted as our new company?"
"Of course!"
Liu Hongmin I have already taken the big head, and I don’t mind if the other two parties follow suit and gnaw on the bones.
As a result, the three parties reached a preliminary intention to cooperate. After many rounds of negotiations, the final cooperation plan was finally determined. In early June, the three parties registered a new toy company in the Cayman Islands, and the company's name was Transformers. Transformers Company owns the copyright to Transformers and has access to Hasbro and Random House.
(End of this chapter)