Paramount Financial Funding Plan Falls ThroughBy T'Bonz
July 15, 2008 - 12:23 AM
A deal in progress with Deutsche Bank on financing that was to provide funds for up to thirty movies, including Star Trek XI and the sequel to Transformers, has been scuttled.
As reported by FT.com, financial times are tough all over and Hollywood is no exception. A plan to bring in $450 million to finance forthcoming films has fallen through because Deutsch Bank, who was to provide the funds, has decided to close its film finance unit, electing to concentrate on other areas.
The Deutsch deal would have given the syndicate assembled by the bank a twenty-five percent stake in each of the thirty films to be financed.
It is still possible, though unlikely, that another bank could step in to complete the deal. Paramount may be forced to obtain funding from Viacom, who owns the studio, but this would expose the company to greater financial risk if the films in question don't do as well as expected.
The films affected by the deal, including Star Trek XI are still likely to be released as scheduled.
To read more, head to the article located here. Thanks to Dragonheart for the tip!