The Motion Picture Association Of America (MPAA) comes out as fiercely against movie business futures.

One Response to The Motion Picture Association Of America (MPAA) comes out as fiercely against movie business futures.

1. Max Keiser says:

   March 30, 2010 at 6:39 AM

   ‘The Killers’ might be a $75 million flop” says Carl Icahn.
   Is arbitraging CantorX with the NYSE?

   My sources inside the MPAA tell me that they are looking at this – and are very concerned . . .

   IMO – the MPAA has the right to be worried; here’s a clear example of potential fraud; Icahn, trying to talk down “The Killers” on CantorX/HSX to help his takeover bid (possibly being short at the same time).

   There is an economic incentive to talk about LGF’s movie as a ‘flop’ and as ‘perception = reality’ in Hollywood – unlike any other industry in the world – where there is no ‘product’ just hype – this then becomes a self-fulfilling prophecy for Icahn who can make money on his “Killers” short as well as get a better deal on his takeover of LGF.

   And/or forces LGF to spend more on marketing (50% of a film’s cost) to overcome Icahn’s bad publicity – which in turn strengthens his chances of a hostile takeover.

   “Based on the fact that these film libraries are in decline and that management has done poorly with their big budget movies and the rumors ‘The Killers’ might be a $75 million flop, I firmly believe that the stock would be lower than the $4.85 it sold at when we started to buy it again in early February,”

   http://www.reuters.com/article/idUSTRE62S4XD20100329?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28News+%2F+US+%2F+Business+News%29

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