Miramax: Round 13
So… if Disney sells off Miramax for less than the $1 million per film avg price tag that already represents film library values going into the toilet, they are just being silly. The sale is not about economics… it is an old-fashioned ego play to clear the decks of the company’s past.
It’s pathetic that we are now at a point where $700 million for 700 films, including big grossers and Oscar winners, is considered the high number. This is not Rich Ross’ fault. But the number is so low that a company as deep-pocketed as Disney should not dumping a commodity that could have future upside… including a sale at a later date.
if Harvey Weisntein can convince Ron Burkle that buying the Miramax library can pay for itself over 5 years or 7 years or whatever under Harvey’s guidance, Disney is, essentially, giving away the library.
More importantly, Disney has not been a company that produces/distributes a ton of movies each year. Since they acquired Miramax, the big studio – including Touchstone and Hollywood Pictures – has made/distributed about the same number of films as Miramax/Disney-Dimension… just over 300 each.
Let’s forget the hope that there will be some DVDesque cash cow distribution system showing up to make each title worth a lot more again. How about if Disney decides – as I project all studios will – go into packaging their entire content play, current and historic, as a subscription offering on a variety of levels. No doubt, the pitch would be kid-centric. But the Miramax library could fill its own channel, playing each title only 6 times a year or less. Doesn’t that channel make the purchase more attractive for buyers over 12? Add in the parade of Touchstone/Hollywood titles that are really for adults. There has to be a way to fill out the Marvel Channel, no?
Bottom Line: This sale or non-sale will not be the key to Disney’s future. It could be successful for The Weinsteins… or it could be the last nail in their glass coffin. The Goreses will just try to turn it over as soon as there is a 20% premium to be made. And Bergstein… really… are you kidding me? That mook owes ME tens of thousands, much less the tens of millions he owes others… this is who Disney empowers? No.
There is one more option… sell it to the Weinsteins and Burkle for $500m, retaining 40% of the rights, but with an agreement not to take any of the revenue for 5 years and to be willing to sell the stake for, say, $500m more at any time. Harvey gets five years to milk the library and to re-build. If things go bad, Disney still has something of potential long-range value. And Diisney isn’t just doing something to do something.
But even at $700m, the number is too low for Disney. It will never destroy Disney. But it could sting mightily… unless library values keep dropping… which would be horrifying. Ironically, Disney is the studio most likely to devalue libraries by rushing to window-busting. Ah, the circle of life!
you know what would be fitting?
disney should tell bob and harv to ‘fuck off’, and bury miramax.
it would be great karma for all the filmmakers they buried over the years.
is anyone rooting for these clowns?