- Paramount waived its right to keep any DreamWorks execs or DreamWorks-based producers in its fold. But the studio is playing hardball and is laying claim to DreamWorks’ entire development slate, including such Spielberg passion projects as “Lincoln,” “The Trial of the Chicago 7” and “The 39 Clues.” In short, Paramount is giving up everything that costs money and is keeping everything that has already been paid for — a shrewd business move by Paramount chief Brad Grey that is certain to exacerbate ongoing bitterness between the two camps. However, if Paramount moves forward with any films that Spielberg is attached to direct or produce, it will have to to pay the DreamWorks principal some 7.5 percent of the gross – a costly proposition for Paramount. Also caught in the middle of the divorce is Spielberg and Peter Jackson’s “Tintin.” Before the Reliance deal closed, DreamWorks approached Universal, which had an option on the foreign rights, to co-finance but the studio balked at that price point because the two filmmakers command as much as 30% of the back-end gross. Paramount made an unexpected proposal Thursday to the filmmakers to fully finance the film for $130 million. They are waiting for Spielberg and Jackson’s response. The move served as a reminder to the departing Spielberg that the new DreamWorks will still be dependent on studio largesse when it comes to financing big-budget tentpoles. Though the Reliance deal, which is valued at $500 million (an additional $700 million is still being raised via bank financing), has been anticipated for some time, what had been unclear was the fate of DreamWorks’ executives and producers, who would have been contractually obligated to remain with Paramount. DreamWorks’ producers include Parkes/MacDonald, Ben Stiller’s Red Hour and Montecito Pictures.
[via Variety]
- It’s a two-horse race for DreamWorks distribution rights: Universal holds a big lead entering the derby’s homestretch, with Disney still in the running and Fox now considered further back in the pack. As for terms of any deal to distribute DW films once Team Spielberg has split with Paramount, sources with knowledge of preliminary talks said Monday that the distribution fee could be as low as 8%. Pretty cheap condiering “such a high-profile race”. But the prize is Steven Spielberg business, with all the cachet such an association can offer.The move by Spielberg, DW chairman David Geffen and CEO Stacey Snider follows their alerting Par of the new $1 billion-plus financial arrangement with Reliance Big Entertainment. Spielberg and Snider will use the funding to reconstitute DreamWorks as a private company.The new DreamWorks is expected to require yearlong distribution help for its planned annual slate of six pics, some of which would be unlikely to ring up the kind of coin registered by this summer’s “Kung Fu Panda,” a $215 million domestic grosser. That had led many to predict DW might have to pay a distribution fee of 10% or more to whomever it chooses as its releasing partner. DreamWorks Animation – a separate public company unconnected to the latest DW venture — will likely keep Par as its distributor at least until 2012. Its agreement allows an early exit in 2011, but there would be attendant costs, so DWA insiders say they’re sticking with Par for the foreseeable future. DWA pays the studio a distribution fee of just 8%, almost half what’s paid on many distributor-for-hire arrangements.
[via Hollywood Reporter]
- You had me at “indie romantic comedy”. Rachel Bilson, Tom Sturridge, Jaime King, and Nikki Blonsky make up the cast. Sturridge plays a wanderer who tries to reconnect with his childhood love, an actress in Hollywood. King plays the man’s sister-in-law, who helps him after his brother rejects him. James Keach is directing the Steve Adams-written script with Trevor Albert through their PCH Prods. Executive producing the film, budgeted at a little less than $5 million, are Forest Backer III and Richard Arlook. Filming on the private-equity-funded film begins Monday in Utah.
[via Hollywood Reporter]
- Some would call it a “love affair” that Keira Knightley has with period pieces. I am starting to call it “my pout only works in the 18th century and sometimes in WWI-era”. If I have to see her in a corset dress one more time… I might be able to forgive her for what may be her next project: Zelda in “The Beautiful and the Damned,” the Film Department’s period love story about F. Scott Fitzgerald and Zelda Sayre, set to be directed by Nick Cassavetes (“The Notebook“). Hanna Weg wrote the screenplay. Lance Sloane and Devin Sloane producing with Film Department’s Mark Gill and Robert Katz. Neil Sacker of the Film Department and Michael Goguen are exec producing, The movie is looking at an April start date.
[via Hollywood Reporter]
- Comedy Central has teamed with Kanye West for a project described as hip-hop meets the Muppets. A half-hour pilot has been shot for the project, tentatively titled “Alligator Boots.” It’s from Jackhole Prods., the production company founded by Jimmy Kimmel, Daniel Kellison and Adam Carolla that also was behind Comedy Central’s puppet-centric “Crank Yankers.” The project, which is under consideration for 2009, would feature music produced and performed by West and fellow rapper Rhymefest, both of whom are serving as executive producers on the pilot alongside Kellison. West also hosts the pilot; the idea is to have a different celebrity guest host for every episode, similar to the setup on the original “Muppet Show.” Kimmel’s brother Jon (“South Park“) is co-exec producer on the pilot.
[via Hollywood Reporter]
- In what is believed to be an industry first, Paramount Home Entertainment is bundling its upcoming home video release of “Kung Fu Panda” with a direct-to-video companion film and will release the package on a Sunday, Nov. 9, instead of the traditional Tuesday. Most of the major studios are actively producing direct-to-video sequels to major theatrical hits, but never before has one come out on home video the same day as the original. While studios occasionally have released titles on a Friday or Monday, this is the first time a new release will arrive in stores on a Sunday. What Paramount is calling the “Pandamonium Double Pack” will retail for less than $25. A single disc of “Kung Fu Panda” only also will be made available, priced below $20.
[via Hollywood Reporter]
- Lionsgate has set up shop on YouTube. The studio quietly introduced a new branded channel on the popular video site this week, with dozens of clips from its library linked to DVD and download-to-own film opportunities. The site is an outgrowth of an ad revenue deal signed by Lionsgate and Google in July. “The idea behind this ultimately is to use it as an area to promote the purchase of the packaged version of that digital product,” said Curt Marvis, president of digital media at Lionsgate. A banner on the Lionsgate Shop Channel page leads to Lionsgateshop.com, where the films highlighted in the clips are available for purchase. That e-commerce site, which has been up since January, could see a significant traffic boost with YouTube. Lionsgate Shop is the most aggressive move a studio has made to monetize YouTube beyond advertising on the site or posting film trailers. Each individual video player page carrying Lionsgate video eventually will carry a link leading to a relevant purchase opportunity at Lionsgateshop.com.
[via Hollywood Reporter]
- MGM’s United Artists, which has a $500 million production facility with Merrill Lynch, has only one movie on the immediate horizon — the Tom Cruise vehicle “Valkyrie” — and could find itself facing tough questions from new Merrill owners Bank of America. In the most dramatic scenario, that could lead to the facility being pulled.
Merrill also has a set of existing slate-financing deals such as Disney and was part of the Melrose I deal at Paramount; any pictures under existing deals will not be affected by the Merrill takeover.
In some respects, Paramount has already begun to deal with the tightening credit market. In July, the studio abandoned efforts to raise $400 million-$450 million in an overall deal with Deutsche Bank and said it would co-finance future movies on a picture-by-picture basis.
Even if Lehman Bros. did not invest directly in many films, it was responsible for investing in and loaning money to high net-worth individuals and hedge funds, who in turn poured their money into single-picture movie financing. “If those individuals and hedge funds can’t get money from the banks as easily, they’re going to use their money on their core business and spend a lot less on the film business,” film-finance expert and former Walden COO John Logigian said. “There’s a trickle down effect.”
Summit is right now riding a buoyant wave with its teen-vampire tale “Twilight“; the Weinstein Co. has strong early word on its R-rated comedy “Zack and Miri Make a Porno.” The rocky financial landscape means those movies are carrying even more of the company’s weight.
[via Hollywood Reporter]
1 Comment
October 3, 2008 at 8:22 am
[...] Jump to Comments So aside from the hip-hop “Crank Yankers“-style puppet show Kanye has in the works at Comedy Central called “Alligator Boots”, apparently he’s had an HBO show in [...]