Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook
Uproar After NC State Agent 'Fixes' Girl's Lunch Preschooler has to eat chicken nuggets instead of mom's meal »

Paramount Loses $450M Funding Deal

The failure is part of a larger trend as liquidity dries up

By Clay Dillow,  Newser Staff

Posted Jul 15, 2008 1:39 PM CDT
Email

(Newser) – 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.

Recent flops like Mike Myers' The Love Guru have further scared investors away from the volatile film industry, leading them to seek more stable investments.
Recent flops like Mike Myers' "The Love Guru" have further scared investors away from the volatile film industry, leading them to seek more stable investments.   (AP Photo/Paramount Pictures, George Kraychyk)
This image released by DreamWorks LLC and Paramount shows a scene from the new film, Transformers, the sequel of which would likely have been funded by Paramount's failed deal with Deutsche Bank.
This image released by DreamWorks LLC and Paramount shows a scene from the new film, "Transformers," the sequel of which would likely have been funded by Paramount's failed deal with Deutsche Bank.   (AP Photo/DreamWorks)
Jack Black, Robert Downey Jr. and Ben Stiller play actors shooting a war movie in the action comedy Tropic Thunder. Paramount is seeking financing for this and other projects.
Jack Black, Robert Downey Jr. and Ben Stiller play actors shooting a war movie in the action comedy "Tropic Thunder." Paramount is seeking financing for this and other projects.   (AP Photo)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

Paramount's funding failure: economic crisis or just bad films?
Deadline

Is Hollywood benefiting from pain at the pump?
Reuters

Malkovich, Mandate pen movie-a-year deal
Variety

 
Deutsche Bank • Transformers • Paramount Pictures • liquidity • Star Trek • movie financing • weakening economy • movie industry • investment banks

More Newser Stories

10 Banks Form $70B Fund to Stave Off Crash
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne