Magnus, Solar, Turok owner in trouble

[VHMMV]

From ICV2.com: http://www.icv2.com/articles/news/14034.html

"British company Entertainment Rights, which owns Casper, the Lone Ranger, She-Ra, Gumby, and a host of other characters, is running out of time to find new investment or an acquirer to avoid going out of business. The company loaded up with debt for its acquisition of Classic Media in 2006 (see “Entertainment Rights Buys Classic Media”) and fell out of its covenants with its lenders last year. Among options being considered are hitting up existing stockholders for additional investment, a sale of the company, or new loans. It received an infusion of L13 million from its main lender in December, which will carry the company through February.

"Expenses are also being cut, with a third of the company’s employees let go. But bad debt from the failure of British retailer Woolworths is also weighing on the company."

Classic Media, for those who don't know (or can't remember), was the company that jointly bought (with Random House) the assets of Golden Books Family Entertainment, previously known as Western Publishing, when they went backrupt. It's still confusing as to how the baby was split in half, but the licensing rights, which includes all future new material featuring the characters, went to Classic Media. As the above quote states, Classic Media was bought by Entertainment Rights in 2006, and now the debt incurred to make that purchase seems to be killing Entertainment Rights.

The question is, if Entertainment Rights has to file for bankruptcy (in British court, no less), what happens then?

[superman-prime]

no bueno unless they sell to VE!

[xodacia81]

My understanding has been that Dark Horse has the rights to publish the GK properties. But, I could be wrong.

[Brother J]

My understanding has been that Dark Horse has the rights to publish the GK properties. But, I could be wrong.

Dark Horse doesn't own the characters, though. The company that is in trouble is the company that owns them (along with Defiant and Broadway, I believe). So if they go under, what happens to any of these licensing contracts they have with Dark Horse and others?

[Chiclo]

My understanding has been that Dark Horse has the rights to publish the GK properties. But, I could be wrong.

Dark Horse doesn't own the characters, though. The company that is in trouble is the company that owns them (along with Defiant and Broadway, I believe). So if they go under, what happens to any of these licensing contracts they have with Dark Horse and others?

It is likely that they'd go up for auction.

That'd be one hell of an addition to a comics collection - the characters themselves.

[Crow331]

This company also owns the rights to Defiant characters?

[Brother J]

My understanding has been that Dark Horse has the rights to publish the GK properties. But, I could be wrong.

Dark Horse doesn't own the characters, though. The company that is in trouble is the company that owns them (along with Defiant and Broadway, I believe). So if they go under, what happens to any of these licensing contracts they have with Dark Horse and others?

It is likely that they'd go up for auction.

That'd be one hell of an addition to a comics collection - the characters themselves.

The contracts would continue with whoever won the characters in the auction? I wasn't sure if a bankruptcy would void any of their active licensing contracts.

I'd hate to see this screw up any plans Dark Horse had with doing something with Magnus or Solar.

[Chiclo]

My understanding has been that Dark Horse has the rights to publish the GK properties. But, I could be wrong.

Dark Horse doesn't own the characters, though. The company that is in trouble is the company that owns them (along with Defiant and Broadway, I believe). So if they go under, what happens to any of these licensing contracts they have with Dark Horse and others?

It is likely that they'd go up for auction.

That'd be one hell of an addition to a comics collection - the characters themselves.

The contracts would continue with whoever won the characters in the auction? I wasn't sure if a bankruptcy would void any of their active licensing contracts.

I'd hate to see this screw up any plans Dark Horse had with doing something with Magnus or Solar.

I was thinking a bit smaller, something like the Defiant or Broadway stables.

[Elveen]

My understanding has been that Dark Horse has the rights to publish the GK properties. But, I could be wrong.

Dark Horse doesn't own the characters, though. The company that is in trouble is the company that owns them (along with Defiant and Broadway, I believe). So if they go under, what happens to any of these licensing contracts they have with Dark Horse and others?

It is likely that they'd go up for auction.

That'd be one hell of an addition to a comics collection - the characters themselves.

The contracts would continue with whoever won the characters in the auction? I wasn't sure if a bankruptcy would void any of their active licensing contracts.

I'd hate to see this screw up any plans Dark Horse had with doing something with Magnus or Solar.

I was thinking a bit smaller, something like the Defiant or Broadway stables.

That would be something.

What if VEI could get both, then bring Jim back to run all three.

[xodacia81]

My understanding has been that Dark Horse has the rights to publish the GK properties. But, I could be wrong.

Dark Horse doesn't own the characters, though. The company that is in trouble is the company that owns them (along with Defiant and Broadway, I believe). So if they go under, what happens to any of these licensing contracts they have with Dark Horse and others?

It is likely that they'd go up for auction.

That'd be one hell of an addition to a comics collection - the characters themselves.

The contracts would continue with whoever won the characters in the auction? I wasn't sure if a bankruptcy would void any of their active licensing contracts.

I'd hate to see this screw up any plans Dark Horse had with doing something with Magnus or Solar.

I was thinking a bit smaller, something like the Defiant or Broadway stables.

That would be something.

What if VEI could get both, then bring Jim back to run all three.

One dream scenario might be Shooter in charge, with the GK3 and the Broadway & Defiant characters/stories going to VEI. I know that Shooter said some of the stuff for the other two was originally meant for Valiant (I think Fatale or Starseed might have been the one/s) and what if there was: Either a merging of concepts from Defiant and BRoadway into the New Valiant OR, the combination of Broadway/Defiant OR...Broadway and Defiant are resumed, as imprints under the VEI banner. I'm throwing these out as possibilities. I am not saying they will happen. I'm saying these COULD happen. Am I saying I want them to happen? Well, I would like to know what came next with Broadway and Defiant. And if the GK3 could be had by VEI, that would make a return to the TRUE vision of Valiant that much easier. Exciting times indeed. But, how much would this cost? A song or a mint? It'll be interesting to track this.

[VHMMV]

Exciting times indeed. But, how much would this cost? A song or a mint? It'll be interesting to track this.

If Entertainment Rights does go belly up, I doubt if the assets will be auctioned off piecemeal. It'll be everything all at once as one big lot, and given that Entertainment Rights had to borrow so much money to acquire those assets in the first place that it drove them into bankruptcy, that's more than a small company like VEI can handle.

For the record, ER paid $210 millionfor Classic Media back in 2006. What makes all of this interesting is that with the purchase, the guys that ran Classic Media were out of a job, so what did they do? They started Boomerang Media, which is a company that does the exact same thing that Classic Media did. I remember commenting at the time that Classic Media had all of the good licenses sown up, so what was left for them to buy? As it turns out, those exact same licenses could be back up on the block.

[xodacia81]

Exciting times indeed. But, how much would this cost? A song or a mint? It'll be interesting to track this.

If Entertainment Rights does go belly up, I doubt if the assets will be auctioned off piecemeal. It'll be everything all at once as one big lot, and given that Entertainment Rights had to borrow so much money to acquire those assets in the first place that it drove them into bankruptcy, that's more than a small company like VEI can handle.

For the record, ER paid $210 millionfor Classic Media back in 2006. What makes all of this interesting is that with the purchase, the guys that ran Classic Media were out of a job, so what did they do? They started Boomerang Media, which is a company that does the exact same thing that Classic Media did. I remember commenting at the time that Classic Media had all of the good licenses sown up, so what was left for them to buy? As it turns out, those exact same licenses could be back up on the block.

I almost wonder if this is some sort of "lose to make" money scheme.

[magnusr]

The contracts would continue with whoever won the characters in the auction? I wasn't sure if a bankruptcy would void any of their active licensing contracts.

I'd hate to see this screw up any plans Dark Horse had with doing something with Magnus or Solar.

A bankruptcy voids all contracts, which is why most contracts contain a protection clause. In such a clause the rights owner would have given some of their rights to the client immediately, but the client would only be entitled to use those rights in the case of a bankruptcy or similar. If there is no protection clause, then it is up to the person handling the bankruptcy or the new owners. Not knowing what this contract says, there is no way of knowing what will happen. Worst case scenario for Dark Horse is that they lose the contract and only can ask for their money back, in which case they would be last in the queue.

/Magnus

[*SQUEE*]

Al tho it would be cool for VEI to get a hold of these properties I wonder if this is even a priority for them. Turok seems like it is a money maker tho so that one would be a smart investment if one could get it.

[Cyberstrike]

IIRC If no one buys the rights and/or ER goes into bankruptcy then the GK3, Defiant and Broadway universes become the property of the British government.

[*SQUEE*]

IIRC If no one buys the rights and/or ER goes into bankruptcy then the GK3, Defiant and Broadway universes become the property of the British government.

Thats kinda messed up.

[SnotDrip]

I didn't quite understand the drift of this post until now as I couldn't make the connection between them having anything to do with Magnus, Solar, Turok..I gather they own the characters but DH has the repro rights (sorry..when someone start talking copyright legaleese my head usually explodes)

"Boomerang Media is a company focused on the ownership and exploitation of entertainment copyrights and related intellectual property across all media." Their parent company, GCTR, is an equity investment firm and all such firms pretty much got the me/snot knocked out of them last year and may continue to bleed well into 2009.

My understanding (limited as it is) makes me believe CM is a " big player" in this area and are quite obviously effected by the economic meltdown...How healthy is VEI at this stage?? Can (WILL/SHOULD??) they pick up the pieces??

So Defiant AND Broadway belong to these guys as well...That is one hell of a stable!!!

What else do they really own/control??

[wrunow]

Exciting times indeed. But, how much would this cost? A song or a mint? It'll be interesting to track this.

If Entertainment Rights does go belly up, I doubt if the assets will be auctioned off piecemeal. It'll be everything all at once as one big lot, and given that Entertainment Rights had to borrow so much money to acquire those assets in the first place that it drove them into bankruptcy, that's more than a small company like VEI can handle.

For the record, ER paid $210 millionfor Classic Media back in 2006. What makes all of this interesting is that with the purchase, the guys that ran Classic Media were out of a job, so what did they do? They started Boomerang Media, which is a company that does the exact same thing that Classic Media did. I remember commenting at the time that Classic Media had all of the good licenses sown up, so what was left for them to buy? As it turns out, those exact same licenses could be back up on the block.

I kinda agree with you, but remember, Acclaim purchased VALIANT for 65 mil. and the intellectual properties only brought around 1 mil or so out of bankruptcy.

Maybe Shooter's major announcement at NYCC is gonna have something to do with all this stuff, if Classic Media is cash starved that would make an opening for someone to acquire some of these properties that had special value to them such as the VE/Solar, Magnus, Turok situation.

[IanAlexavier]

[quote="wrunow"] Acclaim purchased VALIANT for 65 mil. and the intellectual properties only brought around 1 mil or so out of bankruptcy.

quote]


Um.. OUCH!!!!

[Cyberstrike]

I didn't quite understand the drift of this post until now as I couldn't make the connection between them having anything to do with Magnus, Solar, Turok..I gather they own the characters but DH has the repro rights (sorry..when someone start talking copyright legaleese my head usually explodes)

"Boomerang Media is a company focused on the ownership and exploitation of entertainment copyrights and related intellectual property across all media." Their parent company, GCTR, is an equity investment firm and all such firms pretty much got the me/snot knocked out of them last year and may continue to bleed well into 2009.

My understanding (limited as it is) makes me believe CM is a " big player" in this area and are quite obviously effected by the economic meltdown...How healthy is VEI at this stage?? Can (WILL/SHOULD??) they pick up the pieces??

So Defiant AND Broadway belong to these guys as well...That is one hell of a stable!!!

What else do they really own/control??

I don't THINK that Classics Media owns them anymore (and I might be wrong so don't hold me to that) the rights were sold to a British company called Entertainment Rights and it's ER that is in trouble.

[Daniel Jackson]

Sounds like VEI was lucky to have avoided dealing with this whole mess.

Going to all of the expense of writing stories and paying for art to be made for those books, only to have this happen...wow. It may have been enough to force them under.

[myron]

Don't get your hopes up on anything fanboys...


VEI owns rights to very good characters and is struggling to get material out...no way they could take on additional load at this point (IMO)


besides, with the characters available in that bunch, you're gonna get the heavy hitters...Marvel, DC if anything just to bury them in a vault somewhere to hide them. Look what Marvel did to the malibu/ultraverse characters...

IMO, this is bad for Valiant

[xodacia81]

Don't get your hopes up on anything fanboys...


VEI owns rights to very good characters and is struggling to get material out...no way they could take on additional load at this point (IMO)


besides, with the characters available in that bunch, you're gonna get the heavy hitters...Marvel, DC if anything just to bury them in a vault somewhere to hide them. Look what Marvel did to the malibu/ultraverse characters...

IMO, this is bad for Valiant

Good points. And it is that sort of spiteful thinking from those in charge that have ruined this once great world of comics. Stupidity, greed and spite know no limits.

[Crow331]

Maybe Shooter's major announcement at NYCC is gonna have something to do with all this stuff

I think I missed a post somewhere, what major announcement?


I think Myron is right though, if this company is on the verge of BK, where is VEI?? I believe SOMEONE will pick up these characters though if they go BK .... Marvel, Image anyone? Publisher's that are already established with cash flow and as we saw with the Valiant characters, it wouldn't take a ton of money to get them

[comicsyte95]

Crow331 wrote:
I think Myron is right though, if this company is on the verge of BK, where is VEI?? I believe SOMEONE will pick up these characters though if they go BK .... Marvel, Image anyone? Publisher's that are already established with cash flow and as we saw with the Valiant characters, it wouldn't take a ton of money to get them

i hope solar isn't picked up by marvel,i just can't see a fantastic four/solar team up,or worst yet image purchases them??a permanent deathmate nooooooooo