Hollywood Hunts Foreign Investors
Big hollywood studios are looking for financing but unlike wall street co-financing, these deal could be more complicated. cnbc’s julia boorstin with the story. with hedge fund and private equity financing drying up here in hollywood, the new money is coming from overseas in high net worth individuals in the u.s. and this time there are sfrintr attached. wealthy producers want creative input. sources tell me investors from saudi arabia, abu dhabi, india, russia, and china are each looking to spend hundreds of millions of dollars in hollywood. what in particular the foreign investors are after is acquisition of rights. they would love to be able to distribute big hollywood films in their home territories and they’re willing to put up significant equity to do that. in august hemisphere tempo co-financing fund announced its pouring hundreds of millions of dollars into a dozen films including tin tin. and in june legender entertainment struck a deal circumventing chinese limits. now high net worth individuals are shifting their attention from indie films to blockbusters. david ellison raised $350 million to finance mission impossible:s ghost protocol ad other films. they’re having to be much more reasonable about the co-investment terms, not only from the level of their distribution fees but also the films that they allow the co-financers to co-invest in. and now the next wave of investment could actually come from brands, brands like hasbro which produced transformers, as well as the upcoming battleship. the easy money may be gone but there’s still no shortage of demand. back over to you. really interesting. julia, thank you.