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Non-Tech : Viacom, Who Knows What -- Ignore unavailable to you. Want to Upgrade?

To: Emec who wrote (24)	2/24/1998 10:40:00 AM
From: Ken Sammut	Read Replies (1) \| Respond to of 38

"Wall Street Journal" ran a story yesterday on Titanic's projected revenues and what it would mean to both studios. The formula was some what complicated but if I did the math correctly, then here is where Viacom stands as of this weekend. The total cost of the movie was in the low $200M range. Studios receive approx. 50% of box office take. Viacom (Paramount) invested $65M 20th Century the rest. I will skip the revenue formula that was negotiated between the two studios. But here are the results so far. Viacom should be up to approximately $100M or a profit of $35M Every additional dollar that comes in, Viacom will receive 50 cents X .4 or twenty cents on the dollar. The article also predicts that another $300M plus will come from TV rights and video sales/rentals. 300M X.4 or $120M in profit for viacom plus the box office profit as I mentioned above. VIA has 400M shares. A $150M total profit from the film will increase earnings by .36 per share. Please correct my math if it is wrong. Should Titanic add this much to the bottom line (I realize that a movie is a one time occurrence) and BB turn around, our stock is definitely undervalued. Ken S.