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Page 3
============================== My comments - it is interesting that Marvel is borrowing nearly all of this money to start up this movie venture. The lenders must be hoping that they can get their money back with interest. Marvel is betting that the movies will make so much they will be able to retire the debt with five movies or so, use a couple for expenses and still have profit left over. Only by promising to do a series of movies, can the lenders hope recoup their money. Marvel Comics, now Marvel Enterprises, thinks that business is good, and is betting that each movie will make about 50 million profit. Marvel gets the gross profit. This means the have to pay expenses like script writers, movie theatres, and Paramount for distributing the film. I think that it is of particular note is that the profit from merchandising and future DVD/Video sales. Marvel now is in create, and financial control of its own destiny. The other lesson here is if you want to make money, you have to be able to obtain money (borrow money). It is a bigger risk to put someone else's money up and hope you make enough to pay the interest. The positive side is that you are not out cash out of your pocket to do so. Until next time: God bless Robert |
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