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The One Ring Forums: Tolkien Topics: Movie Discussion: The Hobbit:
Movie financing , the credit crunch, and "The Hobbit"

Idril Celebrindal
Tol Eressea


Aug 17 2007, 3:10pm

Post #1 of 18 (495 views)
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Movie financing , the credit crunch, and "The Hobbit" Can't Post

Apparently financing for "The Hobbit" movie is affected by the current credit crunch and turmoil in the financial markets, not to mention financing for other upcoming high-profile projects like the next James Bond and Terminator flicks:

http://www.salon.com/...me_hobbit/index.html

With caffeine, all things are possible.

The pity of Bilbo will screw up the fate of many.

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Patty
Immortal


Aug 17 2007, 3:45pm

Post #2 of 18 (265 views)
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Oh no! Not another hurtle... [In reply to] Can't Post

This quest really does stand on the edge of a knife.Mad

Riding with the Rohirrim!


FarFromHome
Valinor


Aug 17 2007, 3:45pm

Post #3 of 18 (298 views)
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MGM? [In reply to] Can't Post


Quote
The studio in question is MGM: The movies on the list include "The Hobbit" and the next installments in both the Terminator and James Bond sagas.


As far as we know, MGM isn't involved in The Hobbit at this point - and won't be until New Line's option runs out (whenever that may be). If MGM really does have The Hobbit on its list right now, maybe things have been happening that we haven't heard about?

...and the sails were drawn up, and the wind blew,
and slowly the ship slipped away down the long grey firth;
and the light of the glass of Galadriel that Frodo bore
glimmered and was lost.


Patty
Immortal


Aug 17 2007, 3:50pm

Post #4 of 18 (263 views)
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Well, they do have the distribution rights, after it's been made... [In reply to] Can't Post

and it does take funds to distribute it. But hopefully, by the time it's been made MGM will be in a better position to fund it.Smile

Riding with the Rohirrim!


FarFromHome
Valinor


Aug 17 2007, 3:55pm

Post #5 of 18 (247 views)
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That's true [In reply to] Can't Post

I don't think that's where the big investment is needed though. Still, from what we've read, New Line lays off large chunks of its investments to its distributors, so maybe that's what this story is about.

Actually I can't see the credit crunch stopping obvious money-spinners like the movies they mention. It might allow other countries to get a bit of control over their own movie-making for a change, though. I've often wondered if that's what PJ's lawsuit was ultimately about - to break the stranglehold that Hollywood has over the world's film industry. America's current financial weakness may give other countries a chance.

...and the sails were drawn up, and the wind blew,
and slowly the ship slipped away down the long grey firth;
and the light of the glass of Galadriel that Frodo bore
glimmered and was lost.


Darkstone
Immortal


Aug 17 2007, 4:06pm

Post #6 of 18 (286 views)
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Could be good news. [In reply to] Can't Post

Until someone can get the financing in the bank the clock on New Line's film rights keeps ticking. Then the rights revert to Zaentz, MGM still has the distribution rights, and neither of them have a problem with Jackson.

******************************************
The audacious proposal stirred his heart. And the stirring became a song, and it mingled with the songs of Gil-galad and Celebrian, and with those of Feanor and Fingon. The song-weaving created a larger song, and then another, until suddenly it was as if a long forgotten memory woke and for one breathtaking moment the Music of the Ainur revealed itself in all glory. He opened his lips to sing and share this song. Then he realized that the others would not understand. Not even Mithrandir given his current state of mind. So he smiled and simply said "A diversion.”



Patty
Immortal


Aug 17 2007, 4:19pm

Post #7 of 18 (248 views)
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Yes. If our people hold up... [In reply to] Can't Post

it must be admitted that some of our desired cast are a little "long in the tooth".

Riding with the Rohirrim!


Ataahua
Superuser / Moderator


Aug 17 2007, 8:34pm

Post #8 of 18 (248 views)
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NZ's dollar [In reply to] Can't Post

is dropping fast too: Down from a high of 81c against the American dollar to 67.15 at the close of yesterday. If it keeps dropping (which will make the exporters happy, but will make commodities like petrol more expensive) then movie-making in NZ will become more affordable for overseas film makers.

Celebrimbor: "Pretty rings..."
Dwarves: "Pretty rings..."
Men: "Pretty rings..."
Sauron: "Mine's better."

"Ah, how ironic, the addictive qualities of Sauron’s master weapon led to its own destruction. Which just goes to show, kids - if you want two small and noble souls to succeed on a mission of dire importance... send an evil-minded b*****d with them too." - Gandalf's Diaries, final par, by Ufthak.


Ataahua's stories


Compa_Mighty
Tol Eressea

Aug 17 2007, 10:22pm

Post #9 of 18 (297 views)
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It's just temporary. [In reply to] Can't Post

There won't really be any problems with mony, when it comes to The Hobbit. The minute New Line announces Jackson is on board they'll get the money, from the bank or not.

This financial dip is temporary and shouldn't worry a studio with a juicy project as The Hobbit.


Elven
Valinor


Aug 18 2007, 3:14am

Post #10 of 18 (217 views)
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Our died too [In reply to] Can't Post

Dropped 12 cents in a day ... has recovered a bit but it was something like 87 a week ago. Im so glad I did my US shopping the week before that!! EEEKK!!

I dont think it will be too much of a shake-up for the Studios or the Hobbit - they just need to be a bit more selective of which projects deserve the money - and they know the Hobbit would be well deserving of whatever funding it needs ... whenever it happens - and once they get Peter on board Wink

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"


Elven
Valinor


Aug 18 2007, 7:15pm

Post #11 of 18 (259 views)
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Tom Cruise (UA/MGM) raises 500mill$ for 15-18 films over next 5 years ... [In reply to] Can't Post

Remember once there was a rumour about Tom Cruise being involved with the Hobbit ... Wink


This article I thought interesting, because of the association with MGM, and also the recent financial talks ...

The article is here ... and is 2 page ... http://www.reuters.com/...dUSN1637815220070816
Written by By Bob Tourtellotte


Quote


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 the 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.
One of Hollywood's biggest box office draws, Cruise has starred in blockbusters like "Mission: Impossible" and Oscar contenders
such as "Jerry Maguire."
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...



Heart Elven


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"


Darkstone
Immortal


Aug 18 2007, 7:41pm

Post #12 of 18 (211 views)
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Think Tom Cruise would make a good Bilbo? [In reply to] Can't Post

UA provides the star (Cruise), NL provides the director (Shaye).

******************************************
The audacious proposal stirred his heart. And the stirring became a song, and it mingled with the songs of Gil-galad and Celebrian, and with those of Feanor and Fingon. The song-weaving created a larger song, and then another, until suddenly it was as if a long forgotten memory woke and for one breathtaking moment the Music of the Ainur revealed itself in all glory. He opened his lips to sing and share this song. Then he realized that the others would not understand. Not even Mithrandir given his current state of mind. So he smiled and simply said "A diversion.”



Elven
Valinor


Aug 18 2007, 7:47pm

Post #13 of 18 (213 views)
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Palpatations ... [In reply to] Can't Post

*spits brekky over screen*
"Mission Improbable"?
"The Last Hobbit"?

I cant remember the thread, but I think there were some lovely suggestions about which
part Tom would be suitable for ... and Im not sure Bilbo was one of them Wink


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"


Darkstone
Immortal


Aug 18 2007, 8:16pm

Post #14 of 18 (203 views)
Shortcut
Can't you just hear McKellen sonorously intoning... [In reply to] Can't Post

"Your mission, should you choose to accept it.." and "This pocket handkerchief will self destruct in 5 seconds." And, oh, remember how Cruise turned the series hero Jim Phelps into a traitor for the movie? So Cruise's Gandalf could actually be working for the Necromancer!!

.

******************************************
The audacious proposal stirred his heart. And the stirring became a song, and it mingled with the songs of Gil-galad and Celebrian, and with those of Feanor and Fingon. The song-weaving created a larger song, and then another, until suddenly it was as if a long forgotten memory woke and for one breathtaking moment the Music of the Ainur revealed itself in all glory. He opened his lips to sing and share this song. Then he realized that the others would not understand. Not even Mithrandir given his current state of mind. So he smiled and simply said "A diversion.”



Ataahua
Superuser / Moderator


Aug 18 2007, 9:03pm

Post #15 of 18 (199 views)
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That [In reply to] Can't Post


In Reply To
And, oh, remember how Cruise turned the series hero Jim Phelps into a traitor for the movie?


...made me soooo angry. I enjoyed the movie, but as a movie version of the TV universe he ripped the guts out of it - and turned his character into the unkillable hero, of course.

We need a 'spitting tacks' emoticon...

Celebrimbor: "Pretty rings..."
Dwarves: "Pretty rings..."
Men: "Pretty rings..."
Sauron: "Mine's better."

"Ah, how ironic, the addictive qualities of Sauron’s master weapon led to its own destruction. Which just goes to show, kids - if you want two small and noble souls to succeed on a mission of dire importance... send an evil-minded b*****d with them too." - Gandalf's Diaries, final par, by Ufthak.


Ataahua's stories


Elven
Valinor


Aug 19 2007, 3:20am

Post #16 of 18 (231 views)
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Sloans comments mentioning the Hobbit (ToRN homepage article) [In reply to] Can't Post

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
http://www.variety.com/...tegoryid=13&cs=1



Quote

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 the Hobbit is 'in the works' ? If it is the wheels of industry are turning very slowly - the name seems to be thrown round alot, but
nothing concrete.

I'm being a might picky with words - but the Hobbit is 'locked' in a battle?
Is that why they really do need Peter on board - there is some conditional or contractual association between the Hobbit and Peter which
has been in place? and why there has been much talk about the movie, but nothing happening?
There seems to be a run of coincidences lately about the Hobbit - but, like the Shire - everything takes its time - no rush it seems Wink
It would make a bit of sense as to why there's no Hobbit Movie commitment as such yet, and the recent 'talks' with Peter
- Raimis hesitancy to comment on his association and New Lines predicaments.

Presently its all just speculation I guess

Elven


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"


Sunflower
Valinor

Aug 19 2007, 9:16pm

Post #17 of 18 (206 views)
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On a side note.... [In reply to] Can't Post

Can somebody explain some general facts aobut Hollywood finance for me?

1) New Line made more than 3 BILLION dollats out of the LOTR franchise...and that was just from international box office alone, not counting the ancillary revenue...DVDS, toys, etc. WHAT the heck did they do with all that money in just 4 yrs that they are again broke? I know that films nowadays are more exoensive to make and to market, the average tnepole now cositng maybe 200-250 million to make and market, but still, NL is one of the smaller studios, I can understand how someone like Warner's can blow through all that cash, but it'snot like NL is making 10 tentpoles a year!

2)Why has it become necessary in recent years for Hollywood to abandon its traditional methods of finance and go for this questionable "credit"finacing or whatever it is--or some studios anyway. Exactly when did traditional investorsbegin to lose confidence in Hollyowwd and why? Is it soecifically because of the rising costs in marketing a film, or diminshing returns on investments relative to cost? And traditionally how ere Hollywood films financed?

3)What is "creative accounting"? Someone explained this to me once and I think I know the basics, but why is it used so frequently, besids the usual thrist to wring the last buck from an investment.

4)Just how important is Hollywood to the financial health of the country really? Now that we basically outsourced our manufacturing capacity to China the last 15 yrs, (to the point where I wonder if, God forbid, we ever have a world war as nations go to open battle over the world's diminshing rescources, say, 30 yrs from now, which factories we are going to use to move to an all-out war capacity--you wonder why even now troops are being sent to battle in Iraq with shoddy equipement--and God help the soldier or journo who dares to ask why!) and the American economy basically revolves around the construction industry, building more and more homes and suburban sprawl (and no one will ever openly admit this), movies seem to be the only thing that the U.S. is still the global #1 in. Entertainment industry. The music biz is dying, due to tis own colossal stupidity. Hollywood hasn't sank that far yet, and God willing it never will. US willing,I should say.
So another question is I guess, how much of Hollywood is foreign-owned and financed (we were happy to let foreigners own our ports and comanies, etc?) Will they pull out if this gets worse? And how important is Hollywood to the country really?


Sunflower
Valinor

Aug 19 2007, 9:21pm

Post #18 of 18 (207 views)
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PS Patty. [In reply to] Can't Post

LOL....and look how it turned out? I guess the Hobbit quest is like that of destroying the Ring...:)In another thread I said that every time George Lucas went to Tunisia tofilm scenes on Tatooine, without fail, a sandstorm would destroy the sets on the eve of filming. The first time this happened was in 1976 and the Lucas was devestated. Now, it happened even in 2004, and the crew freaked out. But Lucas said, "Oh don't worry, it's good luck." So I guess the turmoil surrounding the Hobbit is good because swirling studio politics seems to herald a great Tolkien adaptation! At least that's how I see it--(and hopefully PJ and crew do too!)

 
 

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