Stan shoots - - he SCORES!!!

[Aman619]

interesting that Marvel chose to announce this "loss" simultaneously with their big Paramount deal. In it, Marvel will finance the movies and only "rent" marketing and distribution from the distributor, thereby finally gaining most of the upside, but also all of the downside risk. Many a film company has mishandled such awesome power. If these films fail badly (Cap and Nick Fury so far were mentioned) it will be MARVEL that must pay back the bankers who loaned the production money.

 

You clearly need to re-read the details of the credit facility because it doesn't work that way. The only risk to Marvel is the movie rights to the characters named in the facility itself because that (i.e., the movies rights to the ten characters involved in the facility) is the only security given for the facility. There is extremely limited downside. One of the analysts on the conference call yesterday couldn't believe the terms Marvel got and said "Wow, that is a bad deal for Merrill Lynch!"

 

wow. JUST the movie rights! unbelieveable. Merrill should have held out for at least the characters themselves. That might have been worth something. As it stands, in return for cash they get the future movie rights of a list of characters that have already failed at the box office.

 

Course, Merrill doesnt lose a dime, right? since they will be selling shares in this entity to raise the money. So the investors will be left with just their sticks in their hands, and have to pay ML again to parlay their rights they will have inherited.