Alcon raises $550 million in funds
Private cash helps co. extend deal with WB
More Articles:
Most Viewed:
'New Moon' wins Thanksgiving box office(3854 views)Invictus(1889 views)Hollywood sea of change(1833 views)Paramount lands 'Area 51'(1638 views)'New Moon' crosses $200 million(1410 views)Christopher Eccleston plays Lennon(1160 views) |
Funds will further expand Alcon's production activity and profile, with Warners distributing 15 Alcon pics domestically over the next five years.
First films under the new deal include two that have already been released -- "P.S. I Love You," which grossed more than $140 million worldwide, and "One Missed Call," which tallied $42 million worldwide -- along with the upcoming "The Sisterhood of the Traveling Pants 2." Next feature in the deal will be announced shortly.
Under the accord, which had been in the works for more than a year, Alcon's principal backer, FedEx founder and CEO Frederick W. Smith, will provide the equity financing. CIT Group and JPMorgan Chase are co-lead arrangers.
Deal comes at a time when studios have been increasingly seeking outside entities to co-finance or fully finance films in an effort to minimize their exposure on a project. Like Village Roadshow, New Regency or Marvel, Alcon is one of a group of production and financing companies that provides studios with a steady supply of pics while limiting the financial risks.
Alcon, operated for a decade under Broderick Johnson and Andrew Kosove, will continue to develop, fully finance, produce and provide P&A while working with Warner's marketing and distribution teams. Alcon noted that it will on occasion co-finance projects with other production entities but retain the right to control P&A, international rights and marketing.
Alcon also maintains control of international distribution. It's often partnered with Warner Bros. Intl. on its releases while pre-selling other titles and releasing internationally through Summit and other independent foreign distributors.
Alcon has specialized in mid-priced features such as "My Dog Skip," "Dude, Where's My Car?," "Insomnia," "Racing Stripes," "The Wicker Man," "The Sisterhood of the Traveling Pants" and "16 Blocks."
CIT managing director Wade Layton told Daily Variety that the pact represents an endorsement of the profitability of the Alcon slate at a time when major institutions appear to be less eager to fund features.
"Making the right financial decisions is the key to longevity in Hollywood," he added.
