business idea. The proposal was to create a new investment group‚ Arundel Partners‚ that would exist solely for the purpose of purchasing sequel rights to motion pictures produced by major U.S. movie studios. The proposal was unusual in that studios rarely sold rights to sequels prior to 1992‚ and interesting in the sense that it did not target specific movies or negotiate prices based on performance of the first movie. Instead‚ Arundel wanted to create a portfolio of options to produce all sequels
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Arundel Partners: The Sequel Project Case Talking points Submitted by: Marc Brands‚ Hajime Tamachi‚ Rani Vainateya‚ Nobuyasu Sugimoto‚ Kunihiro Takahashi‚ Yasuhisa Tsurumi Our group performed a Monte Carlo simulation (attached spreadsheet). We have taken into consideration the data of all studios provided in Exhibit 7. We have assumed that the sequel production and success of the sequel is spread evenly across all the studios. We assume that the past data reflects the future probabilities
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out with a new business idea. The idea was to create an investment group‚ Arundel Partners‚ to purchase the sequel rights associated with films produced by one or more major U.S. movie studios. As owner the rights‚ Arundel would wait to see if a movie was successful‚ and then decide whether or not to produce a second film based on the story or characters of the first. One of the unique features of the new idea was that Arundel would purchase sequel rights before the first films were even made and released
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----------------------------------- spootyhead Apr 17‚ 2007 Arundel Partners Case Analysis ----------------------------------- Arundel Partners Case Analysis Executive Summary: A group of investors (Arundel group) is looking into the idea of purchasing the sequel rights associated with films produced by one or more major movie studios. Movie rights are to be purchased prior to films being made. Arundel wants to come up with a decision to either purchase all the sequel rights for a studio’s
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[Type the company name] | Arundel Partners: The Sequel Project | Advanced Corporate Finance Case Analysis I | ZUBOV‚Vasily 1072582 LI‚Xinyuan 05403613 WU‚Yun 08426959 LU‚Yuan 08426975 9/21/2009 | Executive summary In 1992‚ an unusual business idea came into the eye of David A. Davis‚ a movie industry analyst in Los Angeles. The idea
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Proponents of this venture believe that Arundel should be able to make money by buying options to movie sequel rights as a portfolio of rights rather than on a film-by-film basis because they are diversifying their risk by spreading their options across multiple projects rather than a single movie. Arundel avoids trying to forecast how well the movie will do by purchasing the options to a group of movies ahead of time‚ thus they minimize the risk of moviegoers preferences changing. Past performances
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Arundel Partners: The Sequel Project 1. Executive Summary “Nobody knows anything”. This famous line coined by William Goldman‚ a well known Hollywood screenwriter‚ simply but honestly sums up the movie industry. Numerous academic studies have tried to gauge the determinants of movie success but have yet failed to deliver a satisfying answer. Ravid A. (1999) for example finds that neither stars nor big budgets contribute to profitability of a movie. This case study investigates the case of buying
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Case 1. Arundel Partners: The Sequel Project 1. Why do the principals of Arundel Partners think they can make money buying movie sequel rights? Why do the partners want to buy a portfolio of rights in advance rather than negotiating movie-by-movie to buy them? The principals at Arundel Partners believe that there is value that is not captured in a discounted cash flow when analyzing the launching of a film. They believe that by launching a new film‚ there is immediately an option to launch a sequel
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Decision Tree Analysis Choosing Between Options by Projecting Likely Outcomes Decision Trees are useful tools for helping you to choose between several courses of action. They provide a highly effective structure within which you can explore options‚ and investigate the possible outcomes of choosing those options. They also help you to form a balanced picture of the risks and rewards associated with each possible course of action. This makes them particularly useful for choosing between different
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are many decisions which have to be made. One such decision opportunity arose about one week ago. The question was what to do with a major cable which is in the way of a guard rail that the Department of Transportation is installing. In this paper‚ the decision on what to do with this cable will be solved using a decision tree. The discussion will include the major factors involved in making the decision and also show how the final decision was made. Decision tree The decision tree is an effective
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