Chapter 221: Investments Everywhere

Unfortunately, my idea was vetoed since it was a bit cold (so no Canon event for now), but Gloria liked the idea and said it was only temporarily vetoed.

Alex came up to me and asked, "How come you’re 14 years old?"

"The same way Paige is at Caltech at 13 years old. The same way your dad is pushing 40 and, well… he’s Phil. 

Or your grandmother—the one who turned Gloria’s wedding into a circus—who is over 60 and acts like a spoiled, stupid brat," I replied, the last part carrying a little more venom than I had intended.

"Anyway, Alex, don’t try too hard to grow up. Kids who try to be adults often end up becoming adult children," I told her.

She nodded, but I don’t think she really took it to heart.

After that, everyone continued dining normally. The conversation shifted to lighter topics, the sound of cutlery and quiet laughter filling the room. Midway through the meal, Haley arrived, and the mood shifted briefly as she received a stern reprimand before settling into her seat.

---

The next day, Pepper was at my house, and we were talking in one of the home offices.

"Wow, Peps, there’s a lot for us to discuss. First, JD Studios, then the opportunities we acquired, Monster, and finally the JD Sports division," I began as I looked over the report.

Pepper nodded and began her report. "In the film sector, Chicago has already reached $250 million at the worldwide box office, and we estimate it will close at around $450 million.

Saw was also a success, currently at $60 million, with the expectation of reaching $100 million globally by the end.

Lastly, The Pianist is at $25 million and will probably finish slightly above Saw."

"Huh, the ‘torture porn’ Saw really managed to achieve similar success," I pointed out. I was never a fan of the film, but it’s without a doubt a profitable franchise.

"We’ve created some subsidiaries for our main studio. Just like Brokeback Mountain, Saw was placed under a different subsidiary (with completely different names). 

We decided to place it separately from the others like Paranormal Activity, The Conjuring, and Annabelle, precisely because it’s a different type of horror. 

The Pianist and Chicago are under the same subsidiary. This is all so that one film doesn’t impact the reputation of the others—sometimes we don’t even put the JD logo on them," Pepper explained.

and she continued, "Another day we’ll talk in more detail about the films for next year. 

But I can already say we’ve started production on Wedding Crashers, probably for January 2003. And The Last Samurai is already in production, scheduled to launch in February (2003)."

"The next topic is about Japan (the film The Last Samurai will be mostly filmed in New Zealand)," I read

I opened the internal report, which began by summarizing the Shueisha agreement

I flipped to the key pages, scanning quietly.

"Exclusive international licensing, 20 years. All territories except Japan. Covered titles: One Piece, Naruto, Bleach, Black Cat, Prince of Tennis, Bobobo-bo Bo-bobo," I read aloud.

Huh, I only really know the first three — the rest? No clue. Bobobo-bo Bo-bobo? Who the hell comes up with a name like that?

"Granted rights: full audiovisual adaptation, localization, global distribution, merchandising, video game licenses (in agreement with Shueisha). Japanese publishing excluded," Pepper explained.

"Payment terms: $35 million upfront (lump-sum). $2 million annually, guaranteed for 20 years. 14% royalties on net international profits. Total fixed commitment: $75 million," she added.

$75 million for the rights to Jump's golden trio? The amount of merchandise that can be sold (aside from manga and anime) is monstrous.

"Sounds like robbery in broad daylight," I murmured.

"Shueisha is entirely focused on the domestic market. That's why licenses for the rest of the world are cheap," Pepper said. "4Kids, for example, paid very little for Pokémon."

"Special restriction: the original Japanese anime (broadcast via Fuji TV) remains fully under Toei control. JD Company may create its own international version — including redubbing, editing, soundtrack replacement, and global marketing — but may not alter or interfere with the Japanese version," Pepper continued.

I couldn’t touch the version airing in Japan (not that I ever wanted to).

"Cultural clause: all adaptations must preserve the spirit of the original. Excessive censorship, name changes, and Americanization are forbidden without Shueisha’s written approval," she concluded that part.

"Good, I'm totally ok with that," I agreed.

We committed to staying faithful to the source. What 4Kids did to One Piece in my past life should've been punishable by crucifixion. That level of censorship was beyond ridiculous.

"We commit to investing in the production of the following manga series: Naruto, Bleach, Black Cat, Prince of Tennis, and Bobobo-bo Bo-bobo. (One Piece is already under anime adaptation by Toei.)

Production will be handled entirely by a Japanese studio, in mutual agreement with Shueisha, with JD Company serving as the financial backer. 

52 episodes for Naruto and Bleach, and 13 for the others, potentially extended depending on the popularity of the five series. Each episode costs between 90 to 120 thousand dollars, so the estimated investment this year is $14.3 million," Pepper concluded the Shueisha agreement 

I turned the page and found another section — this time marked with the Square Enix seal.

"Fullmetal Alchemist — preliminary licensing deal in place. Publisher: Square (Gangan Comics)," Pepper said

Now that caught my attention.

"Full global rights secured: anime adaptation, merchandising, video games, DVD/home video, and streaming, excluding Japan. Square retains publishing and Japanese TV control."

"Terms: $2.5 million upfront. $300K per year for 20 years. Royalties: 10% of net merchandising and 8% of audiovisual revenues."

That’s a total steal for what could be a global hit.

I flipped to the next section and spotted the JD acquisition note, stamped at the top: "Applied Semantics — Confirmed."

A huge grin stretched across my face.