June
19DreamWorks Deal, Yippee for Rupees
--Why would Reliance invest half a billion dollars in Hollywood when foreign-based entities like Matsushita that previously spent big bucks on studios all took a bath?
The likely answer: Reliance operatives believe they’re a lot smarter. They’re also betting on a great filmmaker, Steven Spielberg, not just an anonymous company, like MCA (which Matsushita acquired in 1990).
--Why would Spielberg involve himself in these intricate maneuverings when he can make any movie he wants and already has all the money he (or anyone else) could possibly need?
Answer: Because he’s probably still hooked on the DreamWorks dream. He set out to create something unique and it’s never quite happened the way he wanted.
--Since everyone knows Spielberg and Stacey Snider would like to return to Universal with a mega distribution deal, why doesn’t Universal make it happen quickly?
Answer: Universal already has abundant product and some of its top executives are leery about the complexities of “managing” DreamWorks. More important, what happens if GE unloads NBC-Universal and its dealmaking mobility is suddenly inhibited?
--Could Paramount refuse to part with any of the DreamWorks projects that it’s put in development and how would Spielberg cope with an empty slate?
Answer: Spielberg could render these projects essentially unmakeable by invoking provisions of his production deal – 7½% of the gross till break, then 50% of the profits. Two parties – Paramount and DreamWorks – would have to do some nimble negotiation. The end result: Major legal fees and possible impasse.
-- Indian billionaire Anil Ambani, is also putting up development money for stars like Hanks, Clooney, Carrey and Pitt. He’s supposedly the world’s sixth richest person, but doesn’t he realize no one ever wins by funding development?
Answer: If any of his projects are made, he has the option of providing half the production funding for the films. He also wins the eternal love and gratitude of CAA, which brokered the deals. On the other hand, only one in 20 projects developed by studios ever makes it to production – will the stars have a better batting average?
The bottom line: The Indians can afford the gamble. So can Spielberg and his irrepressible partner, David Geffen. And Hollywood could certainly use a fresh infusion of both capital and optimism.
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Is the love of any agency "eternal?" Not a diss, I'm just asking.
Posted by: Jack X. | 6/20/2008 3:26:04 AM