Speaking at Merrill Lynch’s fall media conference, News Corp’s Peter Chernin said he was glad the outside financing for movies was drying up.
That’s an odd statement from an exec whose film studio had arguably the most successful film-financing pacts in its three deals with the George Soros-affiliated hedge fund Dune Capital Management. Nearly every film covered by each agreement was a hit: The Devil Wears Prada, Borat, Live Free or Die Hard, and even Fox’s only summer 2008 success What Happens in Vegas.
Granted, other outside partners did help finance some of Fox’s disastrous summer offerings. We bet Chernin will be glad someone’s offsetting those losses.
THR: News Corp. president and COO Peter Chernin said Tuesday that the drying up of outside financing for movies is a good thing for Hollywood.
In recent years, too much “dumb money” has helped produce too much bad product, leading to a cluttered market, he argued at the Merrill Lynch Media Fall Preview conference in Los Angeles. Wall Street — including private-equity groups and other investors — has bankrolled films produced by News Corp. and many other entertainment industry players in recent years.
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