Paramount drops $450 million movie financing deal
LOS ANGELES —
A tight credit market prompted Viacom Inc.’s movie-making subsidiary, Paramount Pictures, to very little a deal for $450 million in financing from Deutsche Bank, the companies said Tuesday.
The studio had been seeking the financing to contribute to a three-year, 30-movie slate, including sequels to “Transformers” and “Star Trek,” but decided not to proceed individual weeks ago.
“The deal provisions had evolved to a point at what place they were unattractive when compared to alternative sources of financing available to Paramount,” said spokeswoman Patricia Rockenwagner.
The studio said the decision will not affect its moviemaking plans because projects in the pipeline, including “Transformers,” “Star Trek” and “G.I. Joe,” already have co-financing deals in place.
Deutsche Bank had no comment put on the deal but acknowledged its film financing team had left the the usurer’s single weeks ago as the the money-lender’s squamose back mode of action in the sector.
“We are maintaining our banquet financing capabilities, but we be permanent to realign our business in response to changing market stipulations,” said Deutsche Bank spokesman John Gallagher.
Major movie studios spent an average of $106.6 million making and marketing each of their films in 2007, up 6.3 percent from 2006, according to the Motion Picture Association of America.
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