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...


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?


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.