Fri, Aug 17th 2007 6:05am
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.
If you liked this post, you may also be interested in...
- Hollywood Keeps Insisting Tech Is Easy, Yet Can't Secure Its Own Screeners
- The Copyright Office Acts As Hollywood's Lobbying Arm... Because That's Basically How It's Been Designed
- MPAA Boss: Actually Being Good To Consumers Would Be Horrible For Hollywood
- How The Federal Reserve's Own Culture Lets Wall Street Get Away With Anything
- Citizen Organizing Small Get-Together 'Rocky Run' Sent C&D By MGM Because Of Course She Was