United Artists, the film company run by actor Tom Cruise and
Chief Executive Paula Wagner, said on Thursday it raised US$500
million 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 realize 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.
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
US$264 million at overseas box offices, but only a modest success
with US$134 million 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 spokesman refuted a published
report that Goldman Sachs and Deutsche Bank had withdrawn from
underwriting $1 billion 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.
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 theaters 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.
(Agencies via China Daily August 17, 2007)