Lin BaoCheng was in Los Angeles, and both Michael Eisner and Sherry Lansing were also in Los Angeles. When Sherry Lansing was the first of the two to indicate through the headhunting firm that she was willing to meet, the parties quickly set a time and place.
Lin brought Isabella along.
When they arrived, Sherry Lansing was already seated, sipping coffee.
"Hello, Ms. Sherry Lansing. I am Lin BaoCheng — you may also call me Allen. This is my assistant, Isabella."
"Hello, Mr. Allen, and Miss Isabella," Lansing replied, shaking hands with both.
She wasn't surprised by Lin's ethnicity or age. She had already received his basic information from the headhunters. She wouldn't have come if just anyone had invited her to be president of a new company — that would have been foolish.
At first, Lansing had concerns about Lin's age. He wasn't yet twenty. But she had learned from the headhunters that he possessed a fortune exceeding US$1 billion, earned in just about a year. She dared not underestimate him.
With Lin's ability and capital, a new film company could indeed gain a foothold in Hollywood. That was why she agreed to meet and talk.
The three sat down, and Lin and Isabella ordered coffee.
Lin spoke directly: "Ms. Lansing, I've reviewed your résumé. Though you've only been a producer for a few years, your ability is undeniable — otherwise you wouldn't have been appointed vice president. I intend to establish a film company, and I want a strong leader for it. You are very suitable. What do you think?"
"I'd like to ask a few questions first," Lansing said. Seeing Lin gesture for her to continue, she asked: "First, Mr. Allen, how much capital can you invest in this company? That's most important — it determines the scale."
If the scale was too small, she wouldn't continue. She was already a vice president at a Columbia subsidiary. Leaving for a tiny company as president would be pointless.
Lin didn't give a specific figure. Instead he said: "In my plan, the company must have a film library. The more films in stock, the better. We can even spend extra to acquire other companies' libraries. Next, the company must have its own distribution department — not only for the U.S. and North America, but ideally Europe as well. Finally, the production department must be able to shoot multiple films simultaneously as the company grows."
"Of course, these don't need to be achieved immediately, but gradually as the company develops. So, Ms. Lansing, how much initial investment do you think is appropriate?"
Lansing didn't answer right away. She calculated silently. Lin's ambition pleased her. She didn't want to stay in a small company forever. The bigger the boss's ambition, the more room she would have to act.
"The film library can wait until production and distribution are established. If the company makes money, it can expand the library. If not, the priority is turning losses into profits, not expanding.
"For a new company, it's best to acquire an existing Hollywood studio with production, publicity, and distribution departments. Once acquired, the company can immediately expand on that foundation.
"Acquisition plus working capital requires at least US$30 million."
Her bottom line was US$20 million. After acquiring a mid‑sized studio, there had to be funds for two or three low‑budget films. Otherwise, even with her ability, she couldn't grow the company.
She never considered starting with blockbusters. For a new company, low‑budget films were the best entry point.
"That's not much. I plan to invest US$50 million," Lin said. He had over US$200 million available, but he wouldn't pour it all into one company. A new studio had to grow steadily. Moving too fast could be disastrous.
"As for compensation, besides the standard salary for presidents of mid‑sized studios, I'll allocate 10% of shares as options for management. The president will likely receive the largest share, but the exact amount depends on contribution."
"Mr. Allen, will you take the company public?" Lansing asked. A US$50 million startup with stock options tempted her. If she gained 5%, and the company grew to US$500 million in value, her options would be worth a fortune.
If the company failed to reach that value, it would be her own fault as president.
"Most likely," Lin smiled. "Even if not, once the option vesting period ends, if someone wants to leave, I'll buy back shares at five times earnings. That will be written into the contract. I won't go as high as ten times — I won't be a fool. Five times is already generous."
"Mr. Allen, I think I need time to consider," Lansing said. This was about her career. She wanted to think carefully. At first she had only come to look. Now she was truly tempted.
"That's natural," Lin nodded. "To be honest, I'll also meet other executives and consider comprehensively, to find the most suitable candidate."
"Choice goes both ways. I understand," Lansing said. She knew he wouldn't wait solely for her decision. Just as she had to decide whether to join, he had to decide whether to choose her.
They chatted a bit more, then parted, ending the meeting.