Now Playing: Weinstein's (Movie Studio) Finance Drama (Dinosaur Media DeathWatch™)

The Wall Street Journal ^ | September 25, 2009 | LAUREN A.E. SCHUKER

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The surprise hit "Inglourious Basterds" appears to have breathed some life into Weinstein Co., but the independent movie studio is still facing a serious cash squeeze.

Several people familiar with the finances of the company, founded by independent film producers Harvey and Bob Weinstein, said it needs a fresh capital infusion or successive box-office blockbusters to ease the growing pressure.

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The four-year-old film company has burned through most of the roughly $1.2 billion in debt and equity financing raised for its launch in 2005, these people said. Now, these people said, the company likely has to do one of two challenging feats: either raise at least $50 million or turn its upcoming slate of films into a series of hits that build on the success of "Inglourious Basterds."

snip

Weinstein Co. is a relatively small studio in the Hollywood landscape. But its financial woes reflect the challenges facing many independent production companies, some of which have closed their doors in recent years, as film financing has dried up and audiences' tastes have shifted.

In a sign of its troubles earlier this year, Weinstein did not pay back a $75 million bridge loan from Ziff Brothers Investments, according to people familiar with the situation. Interest is accruing on that loan, adding to their debt. That investment firm's chairman, Dirk Ziff -- one of the company's early backers and a friend of Harvey Weinstein's -- resigned from the Weinstein Co. board this year.

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The company has said it plans to cut about 30 employees to shrink the staff of the studio down to 90 employees -- half its size at its peak. Those layoffs come after several earlier rounds of cutbacks and bring its staffing to levels comparable to those of studios producing about the same number of films.

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[abb]

Saturday afternoon good news.

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ping

[Hildy]

Ad a Jew, I was offended by this movie, inglorios basterds, on so many levels.

[Zakeet]

Variety Headline: Dem Dem Donors in Deep Doo Doo over Disappointing Duds

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http://latimesblogs.latimes.com/entertainmentnewsbuzz/2009/09/mgm-needs-money-more-than-fame.html
MGM needs money more than fame

http://www.broadcastingcable.com/article/355463-Network_Neutrality_to_the_Fore.php
Network Neutrality to the Fore
Congressional Republicans oppose new FCC principles

http://www.broadcastingcable.com/article/355458-AT_T_Sends_Letter_To_FCC_About_Google_Violating_Internet_Access_Principles.php
AT&T Sends Letter To FCC About Google Violating Internet Access Principles

http://www.broadcastingcable.com/article/355443-NBC_Affiliates_OK_on_Jay_So_Far.php
NBC Affiliates OK on ‘Jay’ So Far

http://www.deadline.com/hollywood/
First Fall TV Season Fatality: CW Cancels ‘The Beautiful Life’

http://newsosaur.blogspot.com/
Only 5% in UK would pay for web news

http://www.washingtontimes.com/news/2009/sep/25/future-of-newspapers-brings-few-to-hearing/?source=newsletter_must-read-stories-today_more_news_carousel
Future of newspapers brings few to hearing

[rabidralph]

I haven’t seen it. What didn’t you like?

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http://www.variety.com/article/VR1118009202.html?categoryid=13&cs=1
TNT picks up rights to ‘Basterds’
Cable network pays close to $12 million for film

http://www.variety.com/article/VR1118009198.html?categoryid=16&cs=1
Warner Bros. Records cuts staffers

http://www.variety.com/article/VR1118009163.html?categoryid=16&cs=1
Rhino Records lays off 30-40

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[GeronL]

How many of those films made an actual profit?

[abb]

The story indicates that they are about to run out of cash, so it would seem NONE of them made any money, with the possible exception of Inglorious Basterds. But I don’t know how much it cost to make or promote, so we don’t even know about that one.

[TenthAmendmentChampion]

‘Basterds’ is the only film I even heard of from this bunch. Ho hum...

[abb]

In the article it said they spent $35 million on marketing for “Basterds.” Don’t know how much it cost to make. Subtract 35 from 111 leaves 76. And I suspect Brad Pitt didn’t come cheap and I betcha his money was up front.

All in all, the company is in a serious jam. Maybe they can go to Obama for a bailout.

[GeronL]

George Clooney wasn’t cheap either I can imagine.

Let’s not mention the “b” word. Don’t want to give them any ideas.

[Arizona Carolyn]

If they are struggling because people in America are struggling perhaps they will get the hint; in addition, just like the corporate world currently, they will be hard-pressed to hand over big bucks to the democratic party...

BTW the filmed 'Piranha 3D' here this summer and it really did bail out our local economy (for two months at least)...

[Hildy]

Well, it's a fantasy about Jews taking out Hitler and the gang. It's a feel good movie, if you will. But the facts are the facts and for the most part, Jews did nothing, there or here. So my problem is that Hollywood (and Quentin is not Jewish) is giving us a make believe movie about Jews enacting revenge and the same people will not even let us talk about the modern day Nazi's, which we all know is Islam. We're not allowed to talk about it, the movies don't really address it...So again, we see it happening, and we do nothing.

That's my problem.

[tlb]

Looking up the company’s film projects, I’m surprised it has lasted as long as it has before going feet up. Lots of straight to video junk, the unnecessary “Halloween” remakes, Tarantino’s “Grindhouse” bomb, Michael Moore’s “Sicko”, but mostly just stuff nobody will have heard of.

Yet, if the company folds, what will happen to Fraggle Rock: The Movie (2011)?

http://www.imdb.com/company/co0150452/

[rabidralph]

I understand. Thanks for your perspective. I won’t be wasting my time with it.