The day after Isabella's birthday, Sherry Lansing and Isabella formed an acquisition team and approached several film companies Lansing had identified.
At that time, Hollywood's landscape consisted of the Big Eight studios at the top, with many second‑ and third‑tier companies beneath them.
Second‑tier studios generally had complete departments for production, publicity, and distribution. Distribution was the most important. While they couldn't cover all of Hollywood's markets, they could distribute across North America, at least within the U.S.
Well‑run second‑tier companies could be valued at tens of millions of dollars. Even if they were willing to sell, with premiums added, US$50 million might not be enough.
Even struggling second‑tier companies, unless on the brink of bankruptcy, would cost US$10–20 million to acquire. Spending that much on a failing company made little sense.
Thus, Lansing set her sights on third‑tier studios.
Third‑tier companies were smaller and rarely had all departments. Some only produced films, then handed them to second‑tier or major studios for distribution. Others focused solely on distribution, buying low‑budget films. If quality was good, they released them theatrically; if not, they sent them straight to the video market, earning profits that way.
Lansing selected three companies: one with all departments, one focused on production, and one focused on distribution.
Her plan was to merge them into a single second‑tier studio. Though it would rank at the bottom of that tier, its scale would be respectable. This approach required less capital, made integration easier, and gave her greater control.
If she acquired a larger, established second‑tier company, its management would remain to prevent instability, making it harder for her to assert authority. She didn't want to waste energy fighting for control instead of growing the company.
Though Lin BaoCheng had said acquisitions were her decision, Lansing wisely reported to him. Lin readily agreed.
Lansing and Isabella led the team to negotiate with multiple companies. Though they aimed to buy three, they spoke with more — whichever deal closed first would be chosen.
Even small studios worth only a few million dollars required multiple rounds of talks. Lansing and Isabella were busy, visiting several companies each day.
After five days, they completed negotiations with three studios. Lin personally visited each to sign and pay.
The most complete studio cost US$11 million.
The production company cost US$4 million, largely because it had a film library; otherwise, its team alone wasn't worth that much.
The distribution company cost US$7 million. It had a larger library and steady annual income from video and TV syndication, making it more valuable.
"Boss, the acquisitions are complete. I'll integrate them quickly and get the company running," Lansing said.
Lin nodded: "I'll assign financial staff and deposit the remaining US$28 million into the company account. For development, I have two priorities: expand distribution and grow the film library. The rest is up to you."
"I won't let you down," Lansing promised. Then she asked: "Boss, do you want to change the company's name? If not, I'll use the largest studio's name."
"Let's call it Star Pictures," Lin smiled. "I already have a company in Hong Kong with that name. They won't merge, so it's fine."
Lansing gently objected: "Boss, if both companies grow, films will cross markets — Hong Kong to Hollywood, Hollywood to Asia. Using the same name could cause confusion. Better to differentiate."
"In that case, let's call it Morning Star Pictures," Lin said after a moment. One was Star, the other Morning Star.
Lansing accepted. Similarity was fine, as long as they weren't identical.
"Lansing, I have a script. I need you to find the lead actor. It's a family comedy. The protagonist is an 8‑year‑old boy, mischievous and clever. The actor should be between 8 and 11, not too tall."
"I plan to make a trilogy. So when casting, secure contracts in advance."
Lin intended to produce Home Alone. It was a low‑budget, high‑return comedy. If filmed as well as the original, it could earn hundreds of millions. To maximize profit, he wanted three films, reducing costs significantly.
"Boss, you could start with one film. If it proves profitable, then make sequels," Lansing advised.
"I'll fund the trilogy separately, outside the company. If it succeeds, I'll take the profits but leave the rights with the company. That way, management won't feel they worked for nothing."
Since profits could reach hundreds of millions, Lin would invest personally. He wouldn't leave such gains in the company, especially since 10% of shares were reserved as options for management.
Hearing this, Lansing didn't object further. If the boss funded it himself, he could do as he pleased. The company would only provide manpower, with little risk.
Lin had seen all the Home Alone films. He knew the lead actor was crucial. A poor choice could ruin the series. If he didn't find the right boy, he wouldn't proceed.