Spielberg Close To $325 Million Loan Deal With Chase

BusinessWeek:

For months, Hollywood has been buzzing about whether superstar director Steven Spielberg could get a loan. Since October, when he broke away from Paramount Pictures to launch a studio with his longtime producing executive Stacey Snider, the director of such lucrative franchises as Indiana Jones, Jaws, and Jurassic Park has been stymied by the worldwide credit crisis. Now, after some serious restructuring efforts by bankers at JPMorgan Chase (JPM), Spielberg finally seems assured of getting his money.

Financial industry sources say the $325 million in bank commitments for Spielberg's new studio, which retains the DreamWorks name, will likely close in mid-May. The debt had been expected earlier this year, but had been delayed.

Read the whole story: BusinessWeek

Comments

[BenderBot]

09:58 PM on 03/31/2009

I believe this man's skills. If I have one billion dollars, I would definitely lend him the money he needs. I know I will get back my money

[dugum]

04:32 PM on 03/31/2009

Steven Spielberg is a household name. He may even be an icon. People love going to movies. The same way smokers buy a pack of cigarettes- movie goers will get out of their house and buy a $10 movie ticket (not inlcuding concessions). Audiences enjoy getting out of their reality and briefly escaping to another world, especially during a financial crises. During the Great Depression, Hollywood was the only place making money, lots of it.

Steven Spielberg will facilitate this need with worldly imagnation. Some of his movies could be forgettable, i.e. that last Indiana Jones installment, but he is still a name brand that attracts ticket sales and top tier talent. Even with some downturns or a bust, the institution of Steven Spielberg will get what he needs to provide more worlds for moviegoers to inhabit, for two hours or less.

[Skyhawk]

03:34 PM on 03/31/2009

After Indiana Jones IV, I'm not so enthusiastic.

[davidwayneosedach]

02:54 PM on 03/31/2009

Next the movie!

[DomainDiva]

02:02 PM on 03/31/2009

At least Chase is loaning money to SOMEONE.

[jerrypl]

12:00 PM on 03/31/2009

WOW! Spielberg has friends in very high places. He goes to the financial crime syndicate to get his loans. In Hollywood Chase and the rest of the mega-bankstas have their huge banks situated there catering to the 1% of the wealth holders in the country. It really is similar to us going to the neighborhood local bank for a loan except these are the Bankstas. Now there is a movie Dinner with the Bankstas.

http://eye-on-washington.blogspot.com

[shafff]

08:00 AM on 03/31/2009

Cant wait for the next big thing from this guy

[MoistvonLipwig]

07:54 AM on 03/31/2009

If we were regulating banks in a manner that protected depositors money, and taxpayer bailout money, banks would not be investing in movies, even Spielbergs. I'm actually shocked. I always assumed movies were high risk investments where entrepeneurs took big risk for big profit or loss and that banks couldn't play in that arena.

[lizr]

08:10 AM on 03/31/2009

well you would be assuming wrong, on the basis of what information?

Movies do WELL in recessionary times, as people who can't afford to go on vacation and dont choose to drink themselves into a stupor have to have some kind of escape.

Romantic comedies do best, but most escapist movies do just fine, thank you.

Spielberg is a great producer and a contributor to American culture and if HE can't get a loan, no one should. The guy has a track record. Duh.

[norkas]

08:58 AM on 03/31/2009

Movies are very high risk but you have to view the track record of Spielbergs films wins and loses.

Is win rate is GREAT and he is very low risk.

[jollyelle]

07:01 AM on 03/31/2009

Spielberg ----too big to fail?
What's his charitable record of giving? to the United States of America?

..... other than the Righteous Persons Foundation which "is a grant-making foundation that supports efforts that build a diverse and vibrant Jewish community in the United States."

[lizr]

08:11 AM on 03/31/2009

why dont you focus your questions on the head of Goldman Sachs?

[jollyelle]

11:18 AM on 03/31/2009

The article wasn't about him, there are lots of people to focus on.....
the point is ......the distribution of wealth is only going in a few pockets and remains in the same pool. just asking.

[AN2009]

05:35 AM on 03/31/2009

I don't understand why Steven Spielberg doesn't front most of the money for DreamWorks himself. His personal net worth is estimated to be at least $3 billion so, obviously, he possesses the resources to fund the films he wants to make. He doesn't need to beg for money from Wall Street bankers, who, as this recession has shown, are more troublesome and counterproductive than they are helpful.

[gcallaghan]

07:46 AM on 03/31/2009

Other people's money. It's that simple. Risk none of your own. If the deal flops, they're out all of it, while you're out a pittance. If the deal is a hit, you pay them back what they put in and keep the rest.

[DietCokeofEvil]

01:57 PM on 03/31/2009

You probably found that figure in IMDB or Forbes, but Spielberg isn't as wealthy as you think he is. Also, being "worth" $3 billion doesn't mean he has it liquid.