| sbaloans ( @ 2008-07-22 14:27:00 |
Latest Hollywood villain is lack of financing for films
HOLLYWOOD — The collapse of Paramount Pictures' $450 million film financing deal underscores how dramatically the global credit crunch is prompting weary investors and several industry-friendly banks to shy away from a popular form of funding that has fueled Hollywood's recent production growth.
The pullback could set the studios scrambling to find alternative sources of capital to help mitigate risk on their movie slates as filmmaking and marketing costs continue to climb. With debt markets depressed and money drying up, studios like Paramount Pictures and MGM — which for months have been looking to raise new "slate" financing — could find themselves living on leaner movie budgets, making fewer pictures or turning to offshore sources such as India.
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