Wednesday, January 28, 2009

Imagi - Let's be realistic

Since my last post, more has been said about Imagi. Lets try to put a simple timeline of events together. These are made on assumptions from the recent articles and quotes from the president of US based Imagi.

1) Imagi makes TMNT.
2) Imagi goes into production on Astro Boy and development on several others.
3) An auditor discovers that Imagi is running out of money and won't be able to finish Astro Boy or continue development of other projects.
4) Imagi scrambles to get bridge financing to get them to their second round of financing on Feb 3rd.
5) Bridge financing falls apart.
6) Employees at the LA office are told not to come into work.
7) President of US Imagi says that they are hopeful on Feb 3rd that they'll have money (said to the LA Union Rep).

Item #7 is scary. The fact that she said that it is hopeful that money will come in on Feb 3rd can mean a few things. A) The round of financing to be disbursed on Feb 3rd has not been secured because Imagi has not reached a pre-defined set of requirements. B) Those with the money have gotten cold feet and found a way to back out or delay funds (see A above). C) The round of financing has simply not been secured yet (a very scary thought). D) It was a misquote from the US Imagi President and everything is hunky-dory.

If it is either A, B, or C, I would not expect employees invited back to work on Feb 3rd. Or anytime soon for that matter. The financial situation in our world right now is dire. I'd be looking for another job if I were one of the employees.

My gut feeling is that Imagi will get the needed funds. It just won't happen for a while. In the meantime, they don't have the financials to continue operations.

Disclaimer: All of my information is second or third hand and I do not claim to have an insider knowledge, and I have made assumptions on various rumors circulating through the industry. In other words, it is an educated guess.


spacechimpluvr said...

Does anyone know what happened to the IMAGI's 'profits' from TMNT? $95M worldwide box office! Plenty more from DVD I'm sure.

Maybe the Weinstein Company got a pretty good deal?

Maybe TMNT actually costed more than the reported $35M price tag?

Anonymous said...

The distributor most likely (as usual) got a lions share of the profits. I believe the first 2 or 3 Pixar films split profits with Disney 80/20 or so, followed by 50/50, then a possible 12/88 (12% for Disney to distribute), but then Disney bought Pixar outright.

Production of TMNT was probably somewhere around $35 million (it sure looked like it...). But prints/advertising and executive overhead probably cost just as much. Interest on loans to produce the film most likely ate up the rest. It may be in the black, but barely-even with dvd sales, which studios are loath to reveal.

All said, if bush were still in the white house (and we're all glad he isn't), iMagi could go begging (and probably get) free money with no strings attached from bush and the debacle once known as the gop.

At least our new President is demanding accountability before spending our tax dollars, and I doubt iMagi would ever now get a dime!! I'd rather use some of that money to further encourage politicians of all stripes to grow spines.

Anonymous said...

Imagi would not get any sort of bailout from the US government. I don't care who the president is.

That is a stupid way to spend tax dollars. And even the screwed up US government can see that would be useless. The company employs so few people (unlike GM) in this country, and since they aren't a bank.. Well, it would of never happened.

Anonymous said...

...and the TMNT are real...

Sir Howard Stringer said...

Any thoughts on Tim Sarnoff's exit from Imageworks?