The $100 million co-production deal between MGM and Universal has been quietly killed, with only "Josie and the Pussycats" and a bite of future Hannibal feasts left on the plate.
Expect a paragraph in MGM's 10-K SEC annual filing, due Feb. 6 , to discreetly mention the deal's demise.
Such multi-picture co-production funds have been a la mode the past few years, particularly for struggling studios trying to digest huge upfront production costs.
But this was one meal neither side could keep down.
The co-production deal came together in April 1999, a side dish resulting from Chris McGurk's move to MGM's vice chairmanship from U. Under the deal, U suggested projects to be financed by the fund with MGM approval.
But the Lion growled at most U offerings, a dispute that made it into MGM's 10-K filing last year. Only "Josie," a modest $14 million grosser that may barely break even, resulted.
Unable to find any projects appetizing to both sides, the deal was killed and the remaining $86 million carved up.
MGM will have only passive participation in the upcoming "Red Dragon" sequel to the Hannibal Lecter franchise, in return for a 5% bite on first-dollar grosses and an "in association with" credit.
And if any further projects come out of either company's existing rights to the "cannibal Hannibal" franchise, the other side gets to join in co-financing the film.
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