Originally posted by: Phynaz
Originally posted by: heyheybooboo
Dreamworks needs something - I doubt even Intel can save 'em.
Quick! ... other than Shrek name a recent BIG Dreamworks picture or animation (It's not WALL-E, it's ... it's ...)
Paramount distribution of Dreamworks stuff ends this year and the rumahs have them trying to raise $2bil to go independent.
There is so much wrong with your comments it's difficult to know where to start.
How about Kung Fu Panda, $200M in four weeks?
Dreamworks is doing just fine, unlike AMD. Unless you think losing high profile customers to the competition is a good thing.
Dreamworks is already independent, so I don't know how they "go independent". Since they are publicly traded, perhaps you meant take them private? Even if they somehow needed $2B, the founders could cough that up.
Speilberg is worth $3B.
Geffen is worth $4.4B
Katzenburg is worth an even $1B
Anyway, Dreamworks made $26M profit last quarter on sales of $156M. Would you like to go back to the prior quarter when they made $94M?
How do those numbers compare to your beloved AMD?
Hey, Bud ... Are you baiting me? You've nuked the fridge on this one. You should honor the adage, "If you don't have anything intelligent to say, keep your mouth shut."
Do you know how you make a little money in the movie business? You start with
a lot ...
The reason that Spielberg, Geffen & Katzenberg have so much money is that they are smart enough to know better than to put their own money into movie production and promotion. And guess what? Films are financed.
DWA borrows money to make films. Look at the arrangement as a 'construction loan'. And it ain't from a bank. You have a lump sum payment upfront which is typically called the 'front end'. Subsequent lump sums are made at intervals some of which may be timed and others based upon the rate of completion all of which is defined in a complex contractual arrangement.
There is so much wrong with your comments it's difficult to know where to start.
How about Kung Fu Panda, $200M in four weeks?
The below comment is uncalled for. If it keeps up you will be getting a vacation
Markfw900 Anandtech moderator
Let met correct your thinking and ignorance. Apparently you are implying that because Kung Fu Panda made $200mil that means DWA made $200mil. BUZZZZ. That would be incorrect. I'd be hard pressed (and I'm guessing now) to say DWA has even made 10% of that at this point. And why would that be?
Who do you think is responsible for financing, advertising, marketing, distribution, etc., ad naseum? That would be PARAMOUNT. And you better believe that Paramount got paid ... with interest.
Just a little heads up for you. Paramount spent at least $150 million to promote Indiana Jones and most film promotions range from $70 to $100 million. I don't know how much Paramount spent on Kung Fu Panda but I do know that Shrek II advertising and promotions was around $70 million. Depending upon the 'deal' unless you have some insider knowledge of the contractual arrangements I'd say this would generally apply to Kung Fu Panda.
An another thing we can't be sure of is the cost of production. Making a film of this genre can cost anywhere from $70 million to $100 million. This cost is financed with capital from Paramount. It's pretty safe to say that the cost of production and promotion is in the $150 million range. And this is before post production costs, distribution, and theatre profits.
Dreamworks made $26M profit last quarter on sales of $156M. Would you like to go back to the prior quarter when they made $94M?
What's your point, Pynaz? In the two quarters previous to that they made $47 million and $62 million - or $230 million over the last 12 months. DWA makes 2 films a year. As demonstrated, with production and promotion (without distribution!) 2 films a year will cost at least $300 million.
Now ... to the point of my comment (upon which you clearly had no clue). DWA is financed and supported by Paramount. Paramount promotes DWA product and distributes their content through their world-wide channels. (The ultimate number of 12,000 screens sticks in my mind but that may not be correct.)
At the end of 2008, the arrangements for financing and distribution between Paramount and DWA will cease to exist. Now that you have learned that little tidbit, let's visit the leading industry publication and fish wrap ...
DreamWorks considers indie future
Two scenarios emerging for company's rebirth
June 25, 2008
The Associated Press reported this week out of India that DreamWorks is looking to raise as much as $2 billion in equity and debt from Reliance and other sources to fund its return to indie production.
This is the stuff of which Hollywood folklore is made. Is it just a bargaining chip? Will Spielberg cut his own deal with Universal? Will Paramount fight to retain its intellectual property from DWA in a final breakup? Who's the wildcard? News Corp? What about the Warner Companies? Wow! That would be a play!
Maybe you should pay more attention. You probably think that DWA owns the 'Franchise' - Shrek. Nope. That would be Paramount/Viacom.
If they do go independent and drop a $150 million bomb -which they are quite capable of doing - their stock
will be lower than AMD. (And the Hollywood Vultures will be circling to pick at the remains ...)
Any more questions?