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Gold/Mining/Energy : Mainframe Entertainment (ReBoot/Beasties)

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To: JAMES BORECKI who wrote (287)2/5/1998 10:50:00 AM
From: D.E. Shetland  Read Replies (1) of 459
 
There are many ways to account for a possible movie deal. They could get monthly production fees that have built-in margins and get less back-end rewards or, if they have enough TV and other stuff going on, they could take more backend upside and less upfront. It all depends on how the deal is structured and what fees they want to charge on an ongoing basis. Also, they have residual/backend/royalty income on all their other deals, so that stuff starts flowing in (and it's more or less 100% profit) every year.

While a movie would be incredible and they've spoken about a number of projects including some with IMAX, their existing partner on RideFilms, if they could get 3-5 more Tv productions going along with some videos or something, it would be even better. It's very profitable and they should be able to get very good royalty deals out of it. It looks like the most imminent info would be these shows that they spoke about in November and showed at the convention. They've got to be pretty darn close to getting them finished.

They better hit the road and tell the story once they get it built up though. The case would be very strong given the super high valuations of Pixar, Cinar and Nelvana. After they ink these deals, institutions would lap this thing up if they knew about it!
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