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Paramount Loses $450M Funding Deal
The failure is part of a larger trend as liquidity dries up
By Clay Dillow
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Posted Jul 15, 08 1:39 PM CDT
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(Newser)
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A $450-million deal with Deutsche Bank that would have financed up to 30 films for Paramount is off the table, the Financial Times reports. Perhaps an unlikely casualty of the credit crunch, Paramount walked after a lack of enthusiasm in the market led to terms that were unattractive, persons familiar with the deal said.
Despite a string of recent hits for Paramount, and potential blockbusters like Transformers and Star Wars sequels in the package, another bank isn't likely to rescue the deal, the FT says, until the markets improve. Wall Street has been friendly to Hollywood recently, but disappointing returns and the credit crisis have investors fleeing to triple-A rated investments. Paramount’s vice chairman said production would not be affected.