Steven Spielberg buyout top priority
According to filings, Mr. Spielberg has received nearly $90 million in revenues from Universal Orlando for his consulting work. Recently, we disclosed that Spielberg has a 22 year-old contract that allows him to receive revenue from Universal in perpetuity.
Spielburg's role has been to help design new attractions at the Universal Studios Florida including Jurassic Park Adventure, Men in Black, and other movie hits. Ongoing negotiations for a potential lucrative buyout seems to be top priority to end the contract with Spielberg. His fair market stake in Universal could be worth several hundred million dollars.
It is expedient for Universal to renegotiate Spielberg's contract because of the parks inability to refinance loans totalling $950 million. Payments for Spielbutg's consulting take priority over loan payments making it difficult to restructure hundreds of millions in debt.
There are speculations that Spielberg may need buyout money to fund a new movie studio. On July 18, an announcement was made regarding a partnership between Disney, Reliance Big Entertainment, JP Morgan, and Spielberg that would invest $825 million into new box office hits. Since the relationship was broken with Viacom's Paramount pictures, Dreamworks studios has not produced a single movie in 2008.
In a phone conversation with Reliance Big Entertainment’s CEO, the deal is not final. Since the company agree to match Spielberg's fundraising of $325 million, the amount of funding could increase. It was stated that Mr. Ambani will laid down $325 million, JP Morgan $325 million, and Disney $150 million. Disney will have worldwide distribution rights and Reliance will own all domestic rights.
Spielberg could use his buyout from Universal as part of the money he will raise. According to close discussion with Spielberg, he is able to exercise his buyout clause as early as June of 2010. Although Universal reported a profit for the 3rd quarter, Universal combined with holding companies only have some $51 million available in their accounts.
Spielburg's role has been to help design new attractions at the Universal Studios Florida including Jurassic Park Adventure, Men in Black, and other movie hits. Ongoing negotiations for a potential lucrative buyout seems to be top priority to end the contract with Spielberg. His fair market stake in Universal could be worth several hundred million dollars.
It is expedient for Universal to renegotiate Spielberg's contract because of the parks inability to refinance loans totalling $950 million. Payments for Spielbutg's consulting take priority over loan payments making it difficult to restructure hundreds of millions in debt.
There are speculations that Spielberg may need buyout money to fund a new movie studio. On July 18, an announcement was made regarding a partnership between Disney, Reliance Big Entertainment, JP Morgan, and Spielberg that would invest $825 million into new box office hits. Since the relationship was broken with Viacom's Paramount pictures, Dreamworks studios has not produced a single movie in 2008.
In a phone conversation with Reliance Big Entertainment’s CEO, the deal is not final. Since the company agree to match Spielberg's fundraising of $325 million, the amount of funding could increase. It was stated that Mr. Ambani will laid down $325 million, JP Morgan $325 million, and Disney $150 million. Disney will have worldwide distribution rights and Reliance will own all domestic rights.
Spielberg could use his buyout from Universal as part of the money he will raise. According to close discussion with Spielberg, he is able to exercise his buyout clause as early as June of 2010. Although Universal reported a profit for the 3rd quarter, Universal combined with holding companies only have some $51 million available in their accounts.
posted by michael at
7:34 AM
