Chapter 150 Cooperation with Hasbro After Random House learned of Liu Hongmin's idea, they immediately held a meeting to study it. They investigated Hasbro and evaluated the profit prospects of Transformers, and all felt that this was a very promising business. So they replied to Liu Hongmin that they could invite Hasbro to start a three-party negotiation. In May 84, delegations from Random House and Hasbro rushed to Hong Kong and stayed at the Peninsula Hotel. Liu Hongmin also brought Wang Yaowei and the translator hired by the toy factory to hold a tripartite meeting in the small conference room of the Peninsula Hotel. Hasbro was very unhappy with Random House's involvement, but there was nothing they could do. However, they still did not 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 name a price." The Random House representative looked at Liu Hongmin, who signaled them to stay calm. Then he said to Hasbro: "One hundred billion dollars." "What?" The Hasbro representative was horrified. He stood up and looked at Liu Hongmin in disbelief. "How dare you say such a price? You have no sincerity in negotiation at all." The Random House representative said, "You asked Liu to make the offer? Now that Liu has made the offer, do you want to go back on your word?" "The Transformers copyright is not worth $100 billion!" Liu Hongmin smiled and said: "Copyright doesn't have an actual price, so it doesn't matter if it's more or less. In my mind, it's worth this price, or even more."
The Hasbro representatives calmed down their anger. They realized that Liu Hongmin would not sell the copyright to them. The Random House representative said, “Since you two have a disagreement, let’s talk about our three-party cooperation.” Hasbro said unwillingly: "We still want to get the copyright of Transformers." Liu Hongmin spread his hands: "I can give you 10% of the copyright, but I need Hasbro's channels." "That's impossible, at least 50% of the copyright." Liu Hongmin shook his head. "We are a three-party cooperation. I must ensure that I have 60% of the copyright. All operations of Transformers must be based on our opinions. To be honest, I have a comprehensive development plan for Transformers." Random House asked, “What’s the plan?” Liu Hongmin did not hide it. "First of all, I am already working on the comic animation plan. The first Transformers animation will be completed soon." The two sides looked at each other and thought that Transformers was indeed very suitable for being made into an animation. As long as the animation was released, it could completely promote the toys together, not only saving on advertising costs, but also making a profit. If the story of the cartoon is made into a comic and then sold to the world through Random House, it will form a three-pronged approach. It seems that Liu Hongmin does have a development plan for Transformers, and even if it is just a rough draft, it is enough to enhance the value of the Transformers copyright. The Hasbro representative said, “Then we want 30% of the copyright!” The representative of Random House said dissatisfiedly: "Don't be too greedy. Without us, it will be difficult for you to distribute comics and animations." "Random House is not the only bookseller." “But we are the No. 1 bookseller.” The Random House representative was very confident when he said this. He warned the Hasbro representative, "Please don't forget that without us, you and Liu would not be able to reach a cooperation at all." The Hasbro representative frowned, but had to admit that what the Random House representative said was true. "25%, no less!" The representative of Random House reluctantly accepted 15% of the copyright. However, Liu Hongmin would not give these copyrights to Random House for nothing. "Liu, what do you think?" The representative of Hasbro looked at Liu Hongmin. Now Liu Hongmin had taken the initiative. If he did not agree, Hasbro might be kicked out.
Liu Hongmin nodded. "Hasbro 25%, Random House 15%, this ratio is still acceptable. However, there is no free lunch in the world. What can you pay to get these shares?" Hasbro representative: "We can provide toy sales channels all over the world." "Not enough!" Liu Hongmin said, "Even if we use the channels of Random House, we can still promote Transformers to the whole world." The Random House representative's eyes lit up. "That's a good idea. I think we can discuss it." The Hasbro representative suddenly lost his temper. "So what do you want?" Liu Hongmin said: "In addition to channels, Hasbro will form a department, or the three of us will jointly establish a company to operate Transformers." Hasbro and Random House looked at each other and asked, "How should the shares be divided?" Liu Hongmin said: "It will be distributed according to the proportion of our copyright ownership. We own 60%, Hasbro owns 25%, and Random House owns 15%. We invest in copyright, Hasbro invests in toy sales channels plus million US dollars, and Random House invests in book sales channels plus million US dollars." "What about production?" "Toy production will still be done by my toy factory, and the purchase price is fixed at 20% of the selling price. Comics can be printed by Random House's printing factory, and the printing fee will be paid according to the market price. The animation will be provided by me, and the cost will be calculated based on 50% of the sales." The representatives of both parties immediately started to calculate the revenue. The revenue from animation and comics could not be calculated for the time being. As for toys, Hasbro could get 20% of the sales price, and Random House could get 12%. If each Transformer was $50, and the annual sales were 20 million, 12% would be $ million, and % would be $ million. Add in animation and comics, and Random House's revenue will be close to $100 million. Although Liu Hongmin would earn more, neither party could give up such huge benefits. "Liu, you seem to have paid nothing!" The representative of Hasbro was somewhat unwilling that Liu Hongmin was going to take away most of the profits without doing anything. Liu Hongmin spread his hands and said, "I produced the toys, I created the cartoons and comics, and I own the copyrights. Isn't what I have paid enough?" The representative of Random House was also a little jealous. "But what about other profits? If we have other plans, should they be counted towards our new company?" "This is natural!" Liu Hongmin has already taken the lion's share, so he doesn't mind the other two parties taking a nibble. As a result, the three parties reached a preliminary cooperation intention. After several 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 of Transformers and can use the channels of Hasbro and Random House. (End of this chapter)