Paramount Drops Financing Deal with Deutsche Bank
Wed, 16 Jul 2008 09:38:47
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Not even the movie business is exempt from the harsh realities of the country's sluggish economy. Paramount Pictures dropped out of a deal where it was expected to receive a cool $450 million in financing from Deutsche Bank. Paramount sought financing to cover a period of three years and 30 movies, among them franchises and studio crown jewels, such as Transformers 2 and an upcoming Star Trek film, but that deal has fallen through.
According to a Paramount spokeswoman, the deal terms became less and less desirable for the studio and it decided to seek alternative financiers. The decision does not affect current projects, such as the hotly anticipated, live-action version of G.I. Joe.
Deutsche Bank confirmed that it has scaled back its lending operations and has shuttered its film financing division for the time being, given the credit crunch afflicting the current economy. A spokesman says the company will continue to lend to the entertainment sector, but that it has to trim expenditures in the wake of market conditions.
—The ARTISTdirect Staff