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Sources claim that the technology plant nearly paid more than $ 500 million to Abrams' Bad Robot production company, which ended up taking less money from its future home
After almost a year's litigation, JJ Abrams and his wife and Bad Robot partner, Katie McGrath, meet tech giants and traditional studios. The duo finally chose to take less money than they could have earned to stay at WarnerMedia.
According to sources close to the deal, the five-year Bad Robot pact announced Thursday would cost at least $ 250 million or more, thanks to various financial incentives. Abrams and his company will develop and produce new film, television, video games and digital projects for WarnerMedia's various divisions, including Warner Bros., HBO and the upcoming HBO Max streaming service. Warners is the Abrams television channel since 2006, and the new partnership brings together for the first time the film production of Bad Robot, which passes through Paramount, under the same roof.
According to sources, the ability to sell the product to other outlets – that is, setting up The story of Lisey, one of his three shows at Apple via Warner Bros. TV – was essential for the signing of Bad Robot nowhere. This is also one of the reasons why Bad Robot left millions of dollars on the table and far removed from what could have been a record blockbuster deal with Apple.
Abrams and McGrath are interested in turning Bad Robot into a mainstream brand. So they met with Apple executives, including video makers, Zack Van Amburg and Jamie Erlicht, to discuss the iPhone manufacturer's takeover of what might have been a financial issue. important. their business. Bad Robot came to attend meetings armed with a heavy valuation of his business and was looking for a financial arrangement that would give him a future earning capacity of around $ 1 billion over an undisclosed period.
Apple, meanwhile, reportedly offered a deal in the $ 500 million range that would have seen Bad Robot set up exclusively within the Cupertino company. Several factors, however, led to Bad Robot's final decision to circumvent the sensational deal. Among them, the hardware manufacturer wanted Bad Robot to create new projects only for Apple. In other words, Abrams would not have been allowed to work on outside projects for companies such as Disney (Star wars) or Paramount (Star Trek) and television projects would not be sold at third-party sales outlets. The lack of distribution model in theaters was also a concern. Much of Bad Robot's revenue comes from Abrams blockbuster characteristics (hence the $ 1 billion profit estimate). The lack of intellectual property of Apple to allow Abrams to adapt to society was also a concern. Paramount, for example, was able to offer Abrams the Star Trek franchise film, when he was under contract there. Some TV representatives have speculated in recent weeks that Abrams was on the starting line with Apple for a $ 750 million to $ 1 billion deal, but without being impressed by its "immediate" March presentation. in Cupertino. (Sources close to Abrams and Apple categorically deny that his decision to sign with WarnerMedia has nothing to do with this presentation.)
As for WarnerMedia, its CEO, John Stankey, is given a personal mission to sign a new contract with Bad Robot. According to sources, McGrath – who is also a founding member of Time's Up – told Stankey that the continued presence of Warner Bros.'s CEO. Kevin Tsujihara within the company was a problem of "values" while she and Abrams were exploring the options of their company. Tsujihara resigned on March 18 as a result of The Hollywood journalist by publishing texts revealing that the executive had had an affair with actress Charlotte Kirk, and then had tried to help her land a role in the Warners series and movies.
After solving the problem of values, WarnerMedia offered Abrams a large margin of intellectual property – which should also create original franchises for film and television – and a long-standing relationship with Peter Roth, president of the Warner Bros. group. TV, which Stankey and Abrams have both distinguished. in the official announcement of Thursday). The WarnerMedia pact is thought to include at least partial participation in Bad Robot, although this fact – as well as whether Abrams is free to work on other features beyond its pre-existing agreements – remains kept secret. Sources close to the deal say it is less money than money, but great opportunities offered by an established media giant like WarnerMedia. Abrams would have claimed a fixed number of slot machines on Warner Bros. "Feature release schedule, although it is not clear if this was included in the new agreement.With Warners, Abrams has the opportunity to create new features that could allow his new contract to be released. reaching billions can manage to create a successful franchise.
While the $ 250 million five-year Abrams deal looks small compared to the $ 300 and $ 400 million received respectively by Ryan Murphy and Greg Berlanti of Netflix and Warner Bros. TV, the ability to multiply that number by two is great. (And it should be noted that the contracts between Berlanti and Murphy were so rich because Warners and Netflix bought prolific producers' profit sharing in several shows.)
At the end of the day, Stankey was able to sign the largest film and television producer on the planet. Abrams and Bad Robot still have the opportunity to sell new projects to third parties, while earning $ 1 billion.
The representatives of Bad Robot, Apple and WarnerMedia refused to participate in this story.
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