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Just before inception of 2022, MTS acquired 25% stake in Monumental Vision, a company that produces films and TV shows. Although Monumental Vision is a start-up project, it is not an ordinary start-up. It is part of the Monumental Pictures family, which was founded by serious players in the movie industry, Michael Schlicht, Paul Heth, Shari Redstone and Sony Pictures Entertainment.
Michael Schlicht, a famous film producer, shares his thoughts about the deal.
WFA: Michael, good day. First of all, we would like to congratulate you with a successful deal - getting one of the biggest telecom operator as a partner in your company. Well done, yet lets talk about it later. Now, you have been in the movies industry for decades. What is happening therein lately?
MS: Thank you. Indeed, it is a milestone event for our team. Regarding the showbiz and movies business in particular, there is a visible trend, which has been accelerated, in a way, by the lockdowns. That trend is segregation of the big screen filming and production for streaming and on-line platforms.
Next to it, there is a deficit of ideas, scenarios and concepts. Hence, if you stack up one trend atop other, you will see a growing demand for good value for money content, which Monumental Vision is able to deliver.
WFA: Good sell, Michael! Yet tell us, why you are confident that you are the right guys to supply the content and, further, you need to sell that.
MS: We have a perfect mix of cultural and business background in our team. Russian engineering and IT ideas and solutions are well recognized worldwide. No need to tell that Russian literature and art produced world famous persons and products. Now, we see that Russian film industry has made some successful projects, not many, yet the precedents are there.
We see great potential in mixing creative minds and low production costs that should give us a good fundamentals for successful business in CIS markets and worldwide.
You right, though, selling is a challenge, it always has been so in a market economy with competition. Our team and I personally, we have a good track record and our reputation and network good enough to knock on every door in our industry and it would open. Hence, you stand at the door with a good product and a good price, you make a trade.
WFA: Your partnership with MTS, how vital it is for success of the whole story?
MS: Well, all parties of the deal are vivid success stories in relevant sectors thereof. Surely, without such an alliance, all of us would carry on along its own way with a good result. However, this is a good example, when 1+ 1 is 3. We make a perfect fit. MTS has smart management with a vision and understand the market potential. They control a big market share and have access to retails consumers directly. We can produce content and sell B2B.
WFA: Reasoning is solid. Well, now, tell us, how did the deal go, was it easy to strike a deal?
MS: I believe it is never easy to make M&A deals. All parties have to be 100% confident it is a right decision and fits their requirements. The fact that your counterparty is bigger than you thousand of times does not make the thing easier either. Well, as you execute such deals on a regular basis, you probably know better than me.
Everyone should be doing what he is best at, that is why best thing is to have a good advisor on board. We realized that perfectly after our first round of negotiations did not go that well and invited yourselves to help us get through with a good financial advice.
WFA: Thank you, Michael, for giving us this opportunity. What exactly would you point out as most useful part of advisor’s involvement?
MS: Comfort of being confident we are not making mistakes in our negotiation process for the advisor is guiding us in the right direction. For that, certainly, one has to be confident in his/her advisor. I would definitely add that it is the ability to streamline the thought process and structure the deal which is win-win for both counterparties.
You know, when you sit at the negotiations table with you potential partners, while you like each other, yet you realise it is long way to strike a deal. How do you make a pitch which is well balanced?
Neither party wants to commit to a long-term alliance while one has a feeling, he/she is not getting the best out of it. Next, how one would define what is the best term for the deal here and now for you and for your counterparty? In this respect, a professional advisor gives that precious insight into the market standards, explains what is a possible and what is not possible to achieve. At the end of the day, you have a deal everyone believes is a good one.
WFA: Very true. Very well, Michael, thank you for your time and your story. We look forward to seeing headlines about the films your company will turn out and will be at your service for your next steps of successful development.
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