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The One Ring Forums: Tolkien Topics: Movie Discussion: The Hobbit:
'What Say You'? ~ The Hobbit Movie Reports Rumours & Rumblings ~ 20/8/07 - MGM/New Line/UA finance


Aug 20 2007, 9:42am

Views: 577
'What Say You'? ~ The Hobbit Movie Reports Rumours & Rumblings ~ 20/8/07 - MGM/New Line/UA finance Can't Post

Smile Firstly let me explain ...
The 'What Say You?' ~ The Hobbit Movie Reports Rumours & Rumblings ~ Date ~ Topic .... threads I have started for a very selfish reason -
so I can find them in some form of order .... and I can see the progress (date) and what its about from the topic.
I know there posts in other sections about the same subject at times as well - (which is great) ... but it might seems like Im double posting ...
so I wanted to explain ...thats not my intent ... I think it would be easier to categorize and find any news now that there are further reports rumours
and rumblings about the Hobbit Movie ...
and the links are easier to access to reports and pictures ... and searches might not be as hair tearing Wink (for me)

I wont always be able to keep up with them - so maybe if theres a new rumour or report - anyone who has news can use the heading - join in!
So please dont throw tomatoes at me - marshmallows yes, Wink but I hope everyone finds this useful if we need to track back at any time.

Elven x


I found this article from the 27th of Feb 07 - in which Shaye outlines the MGM financial projections relating to UA.

What has evolved (been reported) over the past week is on track with what he mentioned back then.

here is the article ....

reported by Svea Herbst-Bayliss / Reuters / 27th Feb 07



BOSTON (Reuters) - Metro-Goldwyn-Mayer Inc. is raising hundreds of millions of dollars to produce sequels to some
of its most popular films, such as The Terminator and The Pink Panther, at a time Wall Street investors are eager to pay
for movie making in Hollywood, the company's chairman said.

"We are putting together a fund to finance our franchise movies -- James Bond, The Pink Panther,
The Terminator and The Hobbit," MGM Chairman Harry Sloan told reporters, explaining the financing may
be raised in more than one single fund.

The $60 million to $150 million it will take to make each of these movies "is a big enough number to merit bringing in
outside investors and outside financing," Sloan said after a luncheon at the Boston College Executives Club.

The independent, privately-held motion picture, television home video and theatrical production and distribution company
that counts Gone with Wind among its classic hits and has won more than a dozen Best Picture awards, is also in the throes
of negotiating a financing deal for its United Artists unit and may look to arrange similar deals for other units, Sloan said.

The long moribund United Artists studio is being revived by actor Tom Cruise and his production partner, Paula Wagner, who own
roughly 35 percent, of the 88-year old studio by four of Hollywood's biggest stars.
"I've always said that United Artists needs to have its own funding and stand on its own and have its own credit line. And that
continues to be our goal," Sloan said, declining to give a time frame for when the new financing, will come through.
"The announcement will come out when it comes out."

In the meantime MGM, largely owned by Providence Equity Partners, will pay for the slate of UA movies, Sloan said.
"We are financing "Lions for Lambs" a movie starring Cruise, Robert Redford and Meryl Streep that is already filming, Sloan said.
Cruise, Sloan said, has agreed to defer his fees up front fees for the movie.
Looking ahead Sloan said it is possible for other of MGM's units to possibly stand alone at some point just like UA.
"MGM is a conglomeration of a number of brands like Orion and AIP and, while they are not as close (to standing alone) as UA,
they are good subjects for talking about," he added.

Sloan said the time to raise money for independently made movies is right and that nearly every Wall Street investment
bank is raising a fund to finance the industry and satisfy the public's voracious demand for new content.
"Given the demand for new content and that so much money is available to fund it, we will continue to create and arrange
funding for independent entities,"
Sloan said. "The strategies for MGM to be mainly a distributor for independently made movies is our strategy."

Almost 6 months to the day, the announcement this week that $500 million had been raised, keeps The Hobbit Movie alive.

Some movie names have left Sloans list, but The Hobbit remains.

But then I found this article interesting as well ...

Reported 4 weeks prior to the one above .. I was interested in the Film list order ... so far we're up to The Golden Compass to

be released next (correct me if Im wrong) ... but not much talk still of The Hobbit for New Line here ... but lots of talk of money and finance ...

and a familiar financing and partnership name ...

New Line, Royal Bank of Scotland ink $350 million deal

Wednesday January 31st 2007.

Some extracts from the article:

The full article written by Nicole Sperling (Hollywood reporter) - Reuters report - can be found here:



LOS ANGELES (Hollywood Reporter) - The flurry of activity between Hollywood and Wall Street shows no sign of abating.
New Line Cinema is the latest to get into the game with the announcement Wednesday of a $350 million film financing
arrangement with the Royal Bank of Scotland -- a longtime banking partner of the Time Warner subsidiary.

The arrangement will provide co-financing that is expected to last about two years and cover roughly 20 films.
Some of the movies involved include 2007's "Hairspray," "Rush Hour 3" and "The Golden Compass" and
2008 titles "Inkheart" (starring Brendan Fraser and Helen Mirren), "Ghosts of Girlfriends Past" (starring Matthew McConaughey)
and "Semi-Pro" (starring Will Ferrell).

"When we decided to enter into the financial arrangement, we knew we wanted to benefit, but we want our financing partner to benefit also.
If either one of you pick and choose, on one side or another, you will pick the wrong film."

Dollar amounts for each film won't be disclosed; instead, the deal will see RBS contribute an agreed-upon percentage to each film.
"This is very important financing with a solid partner," Lynne said. "We're flattered that they wanted to do a deal with us.
It's an exciting opportunity for us to do additional work on additional films and to target some more tentpole films."

Lynne declined comment on "The Hobbit," the "Lord of the Rings" prequel that has spurred a vitriolic public battle
between New Line and "Rings" director Peter Jackson.

"The ability to work with New Line Cinema on this exciting transaction is a fantastic opportunity for the Royal Bank of Scotland and
underlines our commitment to New Line as filmmakers of the highest caliber," said Alex Brown, managing director and head of Structured
Asset Finance, Media & Entertainment at RBS.
On Tuesday, entertainment finance company Relativity Media announced it has structured a large-scale financing facility with Citigroup
in the $1 billion range to co-finance as many as 90 films with two studios during the next five years.
Other recent deals include Paramount Pictures' slate agreement with Merrill Lynch and hedge fund vehicle Legendary Pictures' five-picture,
five-year deal with Warner Bros.

So from this I see New Line not mentioning the Hobbit

But I do see UA MGM ....

Paramount and Merrill Lynch and hedge funds ...

I posted this article ...


Tom Cruise (UA/MGM) raises 500mill$ for 15-18 films over next 5 years
The article is here ... and is 2 page ... http://www.reuters.com/...dUSN1637815220070816
Written by By Bob Tourtellotte


LOS ANGELES (Reuters) - United Artists, the film company run by actor Tom Cruise and Chief Executive Paula Wagner, said on Thursday it raised $500 million through Merrill Lynch to fund 15 to 18 movies over t he next five years.

Wagner called the financing "a milestone event" for United Artists, which was revived last year by Cruise,
Wagner and their studio partner, Metro-Goldwyn-Mayer Inc.
"It leaves us perfectly poised to realize our vision of making movies that are both important and commercial,"
Wagner said in a statement. Financial details were not disclosed.

... But last year, Cruise's long-time studio partner Paramount Pictures cut its ties to Cruise and Wagner
following the release of "Mission: Impossible III" -- an international hit with $264 million at overseas box offices, but only a modest success with $134 million in U.S. and Canadian ticket sales.

Cruise and Wagner went to Metro-Goldwyn-Mayer where they partnered with the studio behind the James Bond
movies to revive United Artists.

Separately, a Metro-Goldwyn-Mayer spokesman refuted a published report that Goldman Sachs and
Deutsche Bank had withdrawn from underwriting $1 billion in financing for MGM.
MGM's Jeff Pryor said the studio never had a firm deal with Goldman Sachs or Deutsche Bank, so there was never
a commitment from which to withdraw. Continued...

and for the last report Wink


Sloans comments mentioning the Hobbit (ToRN homepage article)

Following the article on the ToRN Homepage: MGM, UA face Manic Money Day (headsup by Xoanon)
Sloan has actually included the word 'Hobbit' in relation to the funding news

From the Variety Article


However, MGM CEO Harry Sloan said Goldman Sachs' move -- or any delay in the franchise fund -- would not impact the movies it has in the works, including "The Hobbit," a co-production with New Line, or the next installment with the Bond franchise, which it is cofinancing with Sony.
"No MGM property will wait for a film (finance) slate," Sloan said.

Of course, MGM's future possible tentpoles have issues of their own. "The Hobbit" has been locked in a battle
between Peter Jackson and New Line, while legal wranglings have been holding up "Terminator 4."

Sloan said that the Lion was waiting until the UA deal closed before moving forward on the MGM franchise film fund, which he
says the company will offer at a later date.

So Crazy

'What Say You?' .....

Do you see any insights here about The Hobbit Movie?

Do you think New Line still has a hope with the Hobbit - or UA - or MGM?

$500 mill is not really that much money for 15-18 films ...

If you have in your achives any more info or comments about these, can you post them in the thread too Smile

Elven x

SILVERCHAIRS Daniel Johns gets the crowd going at the 'Big Day Out Festival' at Minas Tirith before Denethors famous stage dive.

Tolkien was a Capricorn!
..*sing & sway* "All we are saying ..Is Give Pete A Chance" ...
"Your friends are with you Peter"

Subject User Time
'What Say You'? ~ The Hobbit Movie Reports Rumours & Rumblings ~ 20/8/07 - MGM/New Line/UA finance Elven Send a private message to Elven Aug 20 2007, 9:42am
    Well Darkstone Send a private message to Darkstone Aug 20 2007, 5:20pm
        Well... Rabittooth Send a private message to Rabittooth Aug 20 2007, 6:50pm
            Well Darkstone Send a private message to Darkstone Aug 20 2007, 7:23pm
                That's a deep subject grammaboodawg Send a private message to grammaboodawg Aug 20 2007, 9:23pm
                    ...for such a shallow mind as mine. / Darkstone Send a private message to Darkstone Aug 22 2007, 3:45pm
                        A mine is a terrible thing to waste. // grammaboodawg Send a private message to grammaboodawg Aug 25 2007, 12:45am
                            Share the lode.../ weaver Send a private message to weaver Aug 25 2007, 2:32am
        Are you saying then ... Elven Send a private message to Elven Aug 20 2007, 7:32pm
            Yes Darkstone Send a private message to Darkstone Aug 20 2007, 7:45pm
                Thanks Darkstone ... Elven Send a private message to Elven Aug 20 2007, 8:33pm
                    Well Darkstone Send a private message to Darkstone Aug 20 2007, 9:02pm
            I have a few questions too. Sunflower Send a private message to Sunflower Aug 20 2007, 7:54pm
                Well Darkstone Send a private message to Darkstone Aug 20 2007, 8:43pm
                Many of the studios today are owned by public companies entmaiden Send a private message to entmaiden Aug 22 2007, 5:03pm
                    Yep. Darkstone Send a private message to Darkstone Aug 22 2007, 5:16pm
                        Yep. Sunflower Send a private message to Sunflower Aug 23 2007, 8:00am
    I long for the day.. Patty Send a private message to Patty Aug 24 2007, 4:09pm


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