Friday, 25 June 2010

Hollywood Babble On & On #540: 2 Little Biz Bits...

Welcome to the show folks...

Bit of a slow news day, at least for me, so here are a couple of short bits...

1. I GUESS IT WASN'T LUCIFER AFTER ALL:

Well, since no one commented of how they think The Weinstein Co. got out of debt on yesterday's post, I might as well tell you how they did it. TWC's 200+ film library is now the property of their creditors Goldman Sachs, Ambac, and some guy named Louie the Leg-breaker. (Okay, I made that last one up.)

So now the Bros. Weinstein can rebuild their company without the revenue made by having a film library, and their creditors have a bunch of films that cost too much and made too little.

For some reason, I don't know who to congratulate, or for what?

2. OH CARL, YOU CUT-UP!

Renegade shareholder Carl Icahn isn't too keen on reports that his takeover target Lionsgate has renewed interest in merging with the debt crippled MGM. In fact, he said:

"It's analogous to a couple not being able to pay their mortgage on a little house and starting to negotiate on a big, overpriced mansion that's rumored to be haunted."

Couldn't have said it better myself.

Lionsgate is a mid-sized company with a debt load that's a hassle for a mid-size company.

MGM is a formerly large, now small company, with a debt load that's a hassle to a huge company, death to a small or mid-sized company.

While Icahn says it's not impossible, and it isn't, it's probably not prudent.

1 comment:

  1. Hollywood bookkeeping, now that would be a great screenplay.In the case of the Weinsteins,well who would play those guys,actors past and present. I opt for Sidney Greenstreet and Lou Costello. Contemporary guys couldn't do it justice.

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