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Cruise company raises $500m
17/08/2007 12:46 - (SA)
Los Angeles - United Artists, the film
company run by actor Tom Cruise and Chief Executive Paula
Wagner, said on Thursday it raised $500m through Merrill
Lynch to fund 15 to 18 movies over the next five years.
Wagner called the financing "a milestone event" for United
Artists, which was revived last year by Cruise, Wagner and
their studio partner, Metro-Goldwyn-Mayer Inc.
"It leaves us perfectly poised to realise our vision of
making movies that are both important and commercial," Wagner
said in a statement.
Financial details were not disclosed.
One of Hollywood's biggest box office draws, Cruise has
starred in blockbusters like Mission: Impossible and Oscar
contenders such as Jerry Maguire.
Modest success
But last year, Cruise's long-time studio partner Paramount
Pictures cut its ties to Cruise and Wagner following the
release of Mission: Impossible III - an international hit
with $264m at overseas box offices, but only a modest
success with $134m in US and Canadian ticket sales.
Cruise and Wagner went to Metro-Goldwyn-Mayer where they
partnered with the studio behind the James Bond movies to
revive United Artists.
Separately, a Metro-Goldwyn-Mayer spokesperson refuted a
published report that Goldman Sachs and Deutsche Bank had
withdrawn from underwriting $1bn in financing for MGM.
MGM's Jeff Pryor said the studio never had a firm deal with
Goldman Sachs or Deutsche Bank, so there was never a commitment
from which to withdraw.
"We are confident we will come to (a financing package for
MGM), but we are not in any hurry to do a slate deal," Pryor
said. "Slate" is used to describe a group of upcoming films.
Four to six films a year
Pryor added that MGM's priority was completing the United
Artists funding, which demonstrated "that even in tough market
conditions, good product will always prevail."
United Artists said it expects to release four to six films a year. First up is Drama Lions for Lambs, directed by Robert
Redford and set for a November release.
Beyond that, World War
II thriller Valkyrie will hit theatres in the summer of
2008.
MGM is owned by a consortium of companies including private
equity firms Texas Pacific Group and Providence Equity
Partners, Sony Corp and Comcast Corp.
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