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Less than a month before The walking dead entering its 11th and final season, the long and bitter legal war between former showrunner Frank Darabont, CAA and AMC is over.
The cable company has just filed documents with the SEC claiming to have paid $ 200 million to the Shawshank Redemption director and uberagency to put an end to the dispute.
“The Settlement Agreement provides for a cash payment of $ 200 million (the ‘Settlement Payment’) to the plaintiffs and a sharing of future revenues related to certain future streams of The walking dead and Fear the living dead,Says the sober dossier (read it here).
“With respect to the settlement payment, the Company assumed a charge of approximately $ 143 million during the quarter ended June 30, 2021 in consideration for the extinguishment of the claimants’ rights to any compensation in connection with The walking dead and all related programs and the dismissal of actions with prejudice, the amount of which is net of
approximately $ 57 million in equity interests accumulated in the normal course, ”the 3-page document continues.
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“The settlement agreement also includes customary provisions included in such agreements, including mutual release clauses, covenants not to prosecute, waivers, confidentiality, non-denigration and indemnification of third party claims.
All of this means that this saga unfolds like a walker with a knife in his head. While somewhat surprising after nearly a decade of harsh words, personal and corporate humiliations, and hyperbole, the timing of the deal makes sense. the TWD The universe is set to see the Mothershow come to a close within the next couple of years with an oversized conclusion and several spinoffs to take flight. This growth would undoubtedly see more projects added to Darabont and CAA’s complaint under the aspect of the fallout from the ex-showrunner’s contact. Additions that could increase their demands by tens or even hundreds of millions.
Released in late 2013 at the height of the popularity of the hit zombie apocalypse series, the Blank Rome and Kinsella Weitzman Iser Kump Holley represented EP & CAA were looking for around $ 300 million in profit sharing in what has become a situation. multiple prosecutions. Coming about two years after Darabont was unceremoniously TWD, the case has also given rise to similar lawsuits against AMC over the years. Walking Dead creator Robert Kirkman as well as Gale Anne Hurd and other executive producers, past and present, on the series and its spinoffs.
Delayed due to the coronavirus pandemic, a trial for the Darabont and CAA lawsuit was scheduled to begin in April 2022. Until today’s revelation, the praetorian guard of expensive lawyers on both sides presented a ready public face. in combat, although rumors of talks by the parties have been circulating for a few months.
During AMC’s first quarter earnings call with Wall Street analysts, company executives said they expected free cash flow of $ 200 million in 2021. At In light of the settlement announced today, according to the filing, the company now expects free cash flow to be roughly breaking up. even.
AMC Networks has not set a date for its second quarter earnings report, but it will be in the coming weeks. Results for the first quarter were mixed, with profit increasing despite a 6% drop in total revenue from the previous year quarter. As the pay TV package shrinks, AMC Networks is placing more emphasis on its portfolio of niche streaming services, predicting that they will outperform traditional linear TV over the next several years.
The last season of The walking dead debuts on August 22 and, divided into different sections, will last 24 episodes.
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