Hollywood for Sale -- But What's the Right Price?
Once a glittering bauble much sought after by investors, now the entertainment properties for sale are in need of buyers
- MGM needs to be sold or faces bankruptcy sooner rather than later; the studio’s production has been virtually halted as financiers seek to sort out its debt-laden balance sheet.
- Disney has put Miramax up for sale, seeking $700 million -- with buyers so far balking at that price tag.
- Liberty Media’s John Malone has hired an investment bank to sell or
dismantle Starz Media and its main division, Overture Films.
- Summit Entertainment -- while seeking acquisitions itself -- has been quietly shopped for several months, according to several knowledgeable individuals. The company denied that it is for sale when questioned by TheWrap.
A decade or two ago, corporate giants as disparate as Coca-Cola, Matsushita and Vivendi vied to own a glittering piece of the entertainment business.
But now, profit margins are tight, the future looks uncertain and -- visibly -- times are tough all over.
As the industry continues to consolidate -- with NBC Universal bought by Comcast, and Marvel and DreamWorks bought up by Disney -- the number of cash-rich customers cruising the boulevard seems to dwindle with every passing month.
If you question experts in Hollywood and financiers on Wall Street, the conclusion seems to be that there is a significant disconnect between buyers and sellers.
Sellers seem to believe they can command premium prices for
entertainment properties at a time of severe dislocation in the
industry’s business models, while buyers no longer believe that libraries are worth their asking prices.
Read more at TheWrap.
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