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MARVEL SUPERHEROES LAND AT PARAMOUNT
Thursday, April 28 2005
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Marking Brad Grey's first major deal since becoming chairman and CEO of Paramount, the studio said Wednesday that it had signed an agreement with Marvel Enterprises to distribute a slate of films that would be produced by Marvel and feature its roster of superheroes. At the same time Marvel announced that it had obtained $525 million in non-recourse financing from Merrill Lynch Commercial Finance Corp., in which the theatrical and motion picture production and distribution rights for ten Marvel characters would serve as the sole collateral. Paramount will receive an undisclosed fee to distribute the films, but Marvel will retain all revenue from merchandising. It will not contribute to production costs but will be providing promotion and advertising for the films. In a statement, Avi Arad, chairman and CEO of Marvel Studios, said, "Paramount Pictures has the most collaborative and creative team in the business to help us market our films. Under its new leadership, we've found Paramount to be exceptional in every way and look forward to working together for a long, long time."
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