Blade Trinity, the new comic book-based action movie that hit the US screens last week, has already earned over $25 million in the US. Behind the movie stands Avi Arad, the king of comic book-based movies in Hollywood, and one of the industry's most influential producers.
Arad also produced Spider-Man and X-Men, and, together with his partner, Israeli expatriate Isaac (Ike) Perlmutter, they are the controlling shareholders in Marvel Enterprises Inc. (NYSE:MVL), which has 4,700 comic books characters, many of whom will reach the silver screen in the coming years.
Marvel Enterprises, which was on the verge of bankruptcy only a decade ago, now has a market cap over $2 billion. Its share price was over $20 when Spider-Man 2 reached the screens in June. But the share has since slumped, because analysts wonder whether the company can stay profitable, and because of massive sales of shares by the companies officers and directors, including Perlmutter and Arad. Arad sold over $38 million worth of shares, and Perlmutter sold over $150 million worth. Perlmutter's personal fortune is estimated at several hundred million dollars, as the owner of electrical shaver manufacturer Remington.
In order to satisfy the analysts and Marvel Enterprises shareholders, Arad and Perlmutter recently decided not to sell any more shares. Marvel Enterprises also announced that it planned to buy back $100 million worth of shares. Arad is also masterminding the production of more Marvel movie franchises with the best creators and money from the largest studios in Hollywood.
The business is based on merchandizing rights and increasing Marvel Enterprises' share in the movie profits. An agreement with Sony Pictures, for example, gave Marvel Enterprises only 5% of the huge revenue from Spider-Man, igniting a legal battle with Sony Pictures, and a puzzling one.
Marvel Enterprises is also suing Walt Disney Holding Co. (NYSE:DIS) for non-payment of royalties from an animated television series based on Marvel comics characters. The series was originally produces in cooperation with Haim Saban for Fox Kids, and were included in the sale of Saban and Rupert Murdoch's Fox Family channel to Disney.
Mavel Enterprises is now in better shape than ever. It is profitable, has paid off all its long-term debts, and will have $200 million in cash by year-end. The share has been climbing in response, and is now traded at $19.
Lerner and Diamant get together
Avi Lerner and Moshe Diamant, two veteran Israeli Hollywood producers, have joined forces to found a new studio Signature Millennium, which will specialize in mid-budget studio films.
Lerner is a Hollywood B-movie king. He has produced hundreds of low and medium-sized budget movies, most of which go straight to video and cable television, and few of which ever reach the movie houses. He finances his movies from advance sales and equity.
Diamant was the producer for action star Jean-Claude van Damme, who now works with Lerner. In recent years, Diamant has been producing movies financed by a German investment fund.
Lerner and Diamant's first joint production will be "Black Dahlia", based on an infamous Los Angeles murder case. The $40 million movie will be directed by Brian de Palma, and filmed in Los Angeles and Bulgaria.
Published by Globes [online], Israel business news - www.globes.co.il - on December 15, 2004