### Chapter 413: Box Office Fraud and Pregnancy

“Haha, Link, congratulations! The movie you invested in is another big hit. What's your next film? I want to invest with you.”

At the global box office party for "Bridesmaids" hosted by Palm Beach Pictures, David Ellison patted Link on the shoulder and spoke warmly.

“Moneyball, didn’t you invest in that too?”

Link smiled. Hearing David attribute the film's success to him, he didn’t downplay it. Having the reputation of a 'shrewd film investor' in Hollywood not only earns respect but also makes it easier to attract investors for future projects.

“Just this one? Let’s have a few more. Ideally, only our two companies will invest.”

“At this stage, the investment for each film project has already been secured. New projects won’t be ready until next year; there’s nothing suitable for now.”

“Alright then, remember to call me for the next one. If we make money, I’ll treat you to some beautiful women.”

David Ellison winked.

Link smiled lightly and agreed. Among the Ellison siblings, David preferred investing in commercial films like "Mission: Impossible 4" and the upcoming "Jack Reacher," focusing on box office returns, while Megan favored art films, especially those with strong female leads, targeting major film awards.

They were all newcomers to the film industry, so working together wasn’t a bad idea.

“Hi, Link!”

Sylvester Stallone and Arnold Schwarzenegger also approached from the crowd, congratulating him and discussing the investment and filming of "The Expendables 2."

"The Expendables" had been out for over six months, grossing $141 million domestically and $207 million internationally, with a global total of $348 million. It ranked 14th in the North American annual box office chart and 12th globally.

With a production cost of $86 million, the film had a 4:1 profit ratio, making it a hit. Lionsgate, the distributor, earned millions and secured part of "The Expendables" rights.

With good box office results, Stallone suggested filming "The Expendables 2," inviting Lionsgate to invest, with a proposed budget of $100 million.

Lionsgate’s production department, after discussions, deemed the project promising and decided to participate, aiming to secure the film's rights.

Stallone and Schwarzenegger weren’t looking for investment from Link but hoped he would continue to act in the sequel. They promised to give him a bigger role, tentatively as the second male lead—a handsome, skilled mercenary, proficient in strategy and tactics, an all-around fighter. The only flaw would be his womanizing nature, planning to pair him with a skilled and attractive female co-star. If a third film was made, he would take over "The Expendables" and become the lead, with other veteran action stars as his supporting cast.

Link found the offer appealing and asked about the filming schedule since he had three films lined up in the second half of the year, and might not have time if it was shot within the year.

Stallone said they could adjust the schedule according to his availability, showing genuine enthusiasm.

Schwarzenegger also encouraged him, saying his action scenes were impressive, with the potential to become the next big action star.

Link understood their persistence. "The Expendables" received a 55% approval rating, with most positive reviews centered on him. Fans commented that he was the only highlight of the film, as the other veteran action stars appeared too outdated, not resonating with the younger audience. His performance, on the other hand, appealed to this demographic.

Professional media like "The Hollywood Reporter" and "Total Film" estimated that Link contributed 22%-35% to the film's box office, nearly a third, indicating his significant role in its success.

In reality, Link preferred solo action films like the "James Bond," "Bourne," and "Mission: Impossible" series. However, these franchises didn't lack male leads, and new spy film IPs weren’t popular or promising. He hadn’t found a suitable project yet, so he continued with "The Expendables" series to build a reputation in the action genre, aiming to become a top action star and prepare for future blockbuster roles.

“Haha, Link, congratulations on the box office success.”

After bidding farewell to the two action icons, Ryan Kavanaugh of Relativity Media approached with his new companion, an olive-skinned African-American model with an impressive figure and youth.

“Thank you!”

Seeing Kavanaugh, Link inquired about the method of investing in films using big data, hoping to learn from him.

Kavanaugh, seeing his interest, enthusiastically explained that before using this method, one needed to collect extensive film data, analyzing the reasons for box office hits and flops, with the more data collected, the better. Relativity Media had over 20,000 films’ worth of data, using it to build models and such.

Link listened attentively, his goal being simple: use this method as a cover to explain his successful investments in films. The reason for his consistent success was due to borrowing Kavanaugh’s 'big data investment technology.'

As for why Kavanaugh didn’t keep this to himself and readily shared, firstly, it wasn’t a secret; many on Wall Street used it. Secondly, Relativity Media’s development relied on continuous funding. To secure more investment, Kavanaugh needed to promote his technology, using impressive box office data to convince investors and boost their confidence.

With news attributing the success of Palm Beach Pictures’ films to its producers, and not Link directly, Kavanaugh saw an opportunity. By sharing his technology with Link, he could then claim that Link’s success in backing hit films was due to his technology, thus reassuring investors in Relativity Media.

Kavanaugh’s enthusiastic explanation, almost like a sales pitch, drew a lot of attention from those around.

Link smiled wryly; he intended to use Kavanaugh, who in turn was using him.

After sending off the still-enthusiastic Kavanaugh, Ivanka walked over and linked arms with him, her fashionable LV fishtail dress complementing his casual suit.

“You want to learn Kavanaugh’s method of investing in films using big data?”

“I’m considering it. As newcomers in the film industry, learning various investment techniques can be useful.”

Link shrugged.

Ivanka nodded, observing him closely. “You don’t seem very enthusiastic?”

“Can you tell?”

Link smiled lightly and shook his head. He wasn’t in the mood for the party.

Firstly, he received a message in the morning from Guillaume Canet that Marion Cotillard had gone into labor and would give birth either today or tomorrow. The second issue was that "Bridesmaids" was estimated to gross only $200 million globally, far short of the $300 million he remembered. This made him worry about potential discrepancies in other films’ box office results, necessitating more caution in future investments.

“When promoting it, he publicly predicted the film’s box office would be $400-500 million, but now it’s estimated at $200 million, a huge discrepancy.”

Link said.

Ivanka hesitated before revealing something under investigation and not yet confirmed, hence not previously disclosed.

“What is it?”

“We suspect Warner Bros. has falsified 'Bridesmaids' box office data.”

Ivanka said coldly.

“Box office fraud?”

Link was taken aback. This wasn’t uncommon in the film industry.

Despite the 1948 'Paramount Decree' to prevent industry monopolies, requiring separation between film production companies and theaters with strict oversight and audits by the MPAA, box office fraud by major studios still occurred.

Hollywood’s Big Six studios, to maintain their market share, often falsified box office data, suppressing smaller production companies or producers.

Behind the Big Six were media conglomerates controlling 70% of America’s entertainment media and television stations. Lawyers and politicians also relied on the entertainment industry.

Even when caught, challenging the Big Six’s authority was risky, often leading to ruin, so most victims had to accept it.

It’s said that the bankruptcy of Carolco Pictures was partly due to box office fraud for "Cutthroat Island," which grossed far less than it should have.

Common box office fraud methods include underreporting audience numbers, switching ticket sales between films, and misclassifying ticket revenue as concession sales.

In a 2008 interview, Ted Baehr, chairman of the Christian Film & Television Commission, admitted that the Big Six often engaged in box office fraud, leading to his resignation amid criticism.

“According to data from box office tracking company Rentrak, 'Bridesmaids' had an 82% occupancy rate in theaters in Canada and Mexico during its opening weekend. The box office in these regions should be around $19 million, not $9.5 million. Additionally, theaters in sixteen northern states, where Warner was responsible for distribution, had significantly lower box office returns than those in states managed by Lionsgate.”

Ivanka said.

North America’s film market mainly includes the U.S., Canada, and Mexico. After acquiring Lionsgate, Link regained some distribution rights for "Bridesmaids," but still let Warner Bros. handle Canada, Mexico, and sixteen northern states due to their stronger distribution capabilities.

“Currently, our legal department is gathering evidence. If Rentrak’s data is accurate, 'Bridesmaids' should have grossed $114 million in North America in the first three weeks, not just $56 million.”

Ivanka said.

“That’s outrageous!”

Swallowing half the box office revenue was audacious.

“Yes, the legal team is collecting evidence. Once confirmed, we’ll sue Warner Bros. and MPAA to reclaim the stolen box office revenue.”

Ivanka said coldly.

Link frowned. He had initially thought their collaboration on "Easy A" was pleasant, with a good foundation for cooperation, and didn’t expect Warner

 Bros. to exploit them like this.