If you have been following the refinancing of Summit Entertainment, then you know that the studio has been looking for money that is cheaper. While looking for money, big companies send out financial projections to show what kind of money the studio thinks will be coming in, the the future, to repay the new loan. A website TheWrap got it's hands on the document and shared it on their website.
Below are some bits and pieces of wordy mumbo jumbo and some little facts about the dollars and cents of 'Breaking Dawn' that is very interesting:
Summit’s two coming blockbusters, “Breaking Dawn 1 and 2” will cost $263 million -- not the $200 million previously reported -- and are projected to bring in a staggering $1.2 billion for the studio, according to confidential documents obtained by TheWrap.
But the biggest news may be the cost structure behind the fourth and fifth installments of Summit’s blockbuster Twilight franchise. “Breaking Dawn 1” will cost $127.5 million, but according to the documents Summit only has $38.4 million at risk. The film will be released in November 2011.
The second film, “Breaking Dawn 2,” cost $136.2 million, with Summit’s exposure limited to $51.2 million, according to the documents.
The studio anticipates revenues of $1.2 billion related to just those two pictures, the documents say. They are projecting a profit of $228 million for the first film and $219 million for the second for a total of nearly $450 million.
The budgets of “Breaking Dawn” may be higher than expected, but they are relatively modest when compared to other Hollywood blockbusters.
Nonetheless, the costs have skyrocketed from the first film, when the studio put up a mere $37 million for “Twilight” and reaped $231 million in profits.
Clearly, it was a good time to cash in some chips.