It looks like companies are striving to get financing in place before the credit markets dry up on them. The latest to do it is Tom Cruise and film company United Artists, which he runs.
Through Merrill Lynch they raised $500 million to fund between 15 to 18 movies over the next five years. They follow the Weinstein Co. which recently put together a $285 million fund to finance Asian-based projects.
It's possible that these deals are coming together in anticipation of the credit market drying up. In that case those with these deals in place will have a solid financial base to work from for the next few years. Some may find it harder going as time goes on.
CEO of United Artists Paula Wagner, Cruise's partner, said, "It leaves us perfectly poised to realize our vision of making movies that are both important and commercial."
The goal with the financing for United Artists is to release four to six films yearly, starting with the Robert Redford directed "Lions for Lambs," which will be followed by "Valkyrie." "Lions for Lambs" is scheduled for a November release.
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