Wall Street Banks Back Off Plans To Finance Films
from the no-motion-pictures dept
In the past year or so, there's been a surge of interest on Wall Street in financing Hollywood films. As the cost of making motion pictures continues to spiral higher, it makes sense that studios would look beyond its traditional networks to raise money. That being said, we had some hope that investment banks and hedge funds could be a positive force in the industry, since they'd likely be reluctant to write a blank check for some of the big budget, big star boondoggles that have characterized the industry of late. Well, it looks like we'll have to wait awhile before we learn how this plays out. The credit crunch has prompted Goldman Sachs and Deutsche Bank to postopone plans to raise $1 billion to fund films at MGM. The banks could still do the deal if they see a lot of investor demand for it, but that seems pretty unlikely in light of current conditions. Meanwhile, the Hollywood studios might have to make do with a bit less cash.
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Filed Under: credit crunch, finance, hollywood, wall street
Companies: deutsche bank, goldman sachs, mgm
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Plot
Or is it just that people don't want plot any more?
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Re:
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The Hobbit has a plot.
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hey, joe, where you goin' with that O in your hand
is it related to a "cornpone"???
maybe it's what my ex-boss suffers from...
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More of the Same
creativity not money.
Hollywood isn't interested in making
good movies, they're interested in
making money. If a good movie is
the result that's nice but it's not
necessary.
Hollywood has also become risk adverse.
The movies they produce are insanely
expensive. More of the same seems to
work, so we get predictable flashy
violence sequel six or a remake of
To Kill A Mocking Bird.
I think they could do both. Many
smaller investments could yield as
much return and would be more likely
to produce good movies as well.
I don't believe that money from bankers
would help. I'd like to see more low
budget movies and some experimentation.
That would produce few flops to be sure
and perhaps some real winners as well.
And yes, good is subjective. I'd like
more brain candy and less eye candy please.
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Sorry to read this news
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Then, when Hollywood becomes dependent on this foprm of financing and enough greedy suckers get burnt in the market, we can have a collapse, followed by (a brief) moment of sobriety in both the markets and Hollywood.
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Re: #8 - Andy McLean said it
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it's logical
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