Tom Cruise: A Paramount Move
In the article, published by The Australian, Tom Cruise has been reportedly dumped by Sumner Redstone at Paramount Pictures. The reasons range from the 'new' stern stance by studios after the Mel Gibson rant-page, to Cruise's own public shenanigans with over exposure to the entertainment media. The question here is who is playing who?
Tom Cruise is clearly the type of guy who does things his way. Let's face it- it works. He has freed his mind from the bondages of critical commentary, creating a life and lifestyle second to only a handful of actors. The final chapter only to be written after his death. In the article Cruise was reported to have met with Terry Semel, Chairman and CEO of Yahoo. This is a huge piece of information. This move lends itself to a calculated play Cruise may have been planning for the past 18 months. The massive media assault may have simply been a preemptive step to 'reach' (in marketing terms) as many people as possible in the world.
Now, worth an estimated $350 million, with a media profile that is still second to none, Cruise is in a position to take big chances. Based on the article Cruise's deal with Paramount included an 'override' of 20 percent. With the movie business in a steady decline due to Internet technology that means that $200 million films can easily lose money at the box office. But under Cruise's deal with Paramount a $200 million film with $125 million at the box office is a $25 million payday for Cruise (plus his $10 million per year retainer). The studios get to chew on a staggering adjusted $100 million loss. This was a great hedge deal for the studios 10 to 15 years ago, but a very bad deal for Paramount now, and stockholders want action. This was it.
Tom Cruise is clearly the type of guy who does things his way. Let's face it- it works. He has freed his mind from the bondages of critical commentary, creating a life and lifestyle second to only a handful of actors. The final chapter only to be written after his death. In the article Cruise was reported to have met with Terry Semel, Chairman and CEO of Yahoo. This is a huge piece of information. This move lends itself to a calculated play Cruise may have been planning for the past 18 months. The massive media assault may have simply been a preemptive step to 'reach' (in marketing terms) as many people as possible in the world.
Now, worth an estimated $350 million, with a media profile that is still second to none, Cruise is in a position to take big chances. Based on the article Cruise's deal with Paramount included an 'override' of 20 percent. With the movie business in a steady decline due to Internet technology that means that $200 million films can easily lose money at the box office. But under Cruise's deal with Paramount a $200 million film with $125 million at the box office is a $25 million payday for Cruise (plus his $10 million per year retainer). The studios get to chew on a staggering adjusted $100 million loss. This was a great hedge deal for the studios 10 to 15 years ago, but a very bad deal for Paramount now, and stockholders want action. This was it.
posted by William H Wilkins III at 11:12 AM
0 comments
