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.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: credit crunch, finance, hollywood, wall street
Companies: deutsche bank, goldman sachs, mgm
Reader Comments
Subscribe: RSS
View by: Time | Thread
Plot
Or is it just that people don't want plot any more?
[ link to this | view in thread ]
[ link to this | view in thread ]
The Hobbit has a plot.
[ link to this | view in thread ]
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...
[ link to this | view in thread ]
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.
[ link to this | view in thread ]
Sorry to read this news
[ link to this | view in thread ]
Re:
[ link to this | view in thread ]
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.
[ link to this | view in thread ]
Re: #8 - Andy McLean said it
[ link to this | view in thread ]
it's logical
[ link to this | view in thread ]
Business
I am new in this site.i completed my graduation and i start a new business but i have some problems because i started new so i can not any experience so how to improve my business with less expenditure and which business is good for in this situation.Most of the people suffer for their job so do not
disappointed start a new business first is we face many up and downs so every one be strong and start a new life.
==================================
MLS listings
[ link to this | view in thread ]