Warner Bros., a name synonymous with blockbuster hits like The Hangover series, has consistently dominated the global box office. To maintain its leading position and produce more high-quality films for a global audience, Warner Bros. strategically partnered with RatPac-Dune Entertainment. This landmark deal marked a significant shift in Hollywood financing and promised to inject hundreds of millions of dollars into upcoming film productions, ensuring a continuous stream of cinematic successes, potentially even surpassing the cultural impact of franchises like The Hangover.
This new co-financing arrangement with RatPac-Dune Entertainment, a company formed by Steven Mnuchin, Brett Ratner, and James Packer, was finalized to secure approximately $450 million in funds. Mnuchin himself indicated the potential for this partnership to extend beyond its initial four-year term, echoing the successful and prolonged relationship Dune had previously enjoyed with 20th Century Fox. This move came just three months after Warner Bros. concluded its co-financing partnership with Legendary Entertainment, signaling a strategic realignment in studio funding.
The first film to benefit from this financial collaboration was “Gravity,” starring Sandra Bullock and directed by Alfonso Cuaron. “Gravity” was lauded at the Venice Film Festival and commercially released to widespread acclaim shortly after this partnership announcement, demonstrating the immediate impact of the RatPac-Dune investment.
Bret Baier at Fox News
Beyond “Gravity,” the agreement also encompassed “Grudge Match,” a comedy featuring Robert De Niro and Sylvester Stallone, set for a Christmas release. The RatPac-Dune partnership was designed to cover a broad spectrum of genres and budget sizes, including films from New Line Cinema. However, it specifically excluded projects already tied to other co-financing deals with Village Roadshow and Gulfstream, as well as properties derived from the lucrative Harry Potter, Lord of the Rings, and Hobbit franchises. This selective approach allowed Warner Bros. to strategically leverage the new funds while maintaining existing financial structures.
Kevin Tsujihara, then CEO of Warner Bros., expressed enthusiasm about the alliance, stating, “We are very pleased to be entering into this relationship with RatPac-Dune Entertainment. This agreement gives us increased strength and flexibility in the motion picture division and an even greater ability to manage risk as we continue to produce high-quality filmed entertainment for the global audience. We look forward to working with their team as we move forward in this exciting new partnership with a truly great organization.” His statement underscored the strategic importance of this financial bolstering for Warner Bros.’s future film output.
Warner Bros. emphasized its consistent top performance at the domestic box office over the preceding decade. They highlighted six films from that year alone that had each surpassed $200 million globally: “We’re the Millers,” “The Conjuring,” “The Great Gatsby,” “The Hangover – Part III,” “Pacific Rim,” and “Man of Steel.” The inclusion of “The Hangover – Part III” in this list served as a testament to the studio’s knack for producing commercially successful franchises and standalone hits, further justifying the need for robust financial partnerships to continue this trend.
Mnuchin also commented on the partnership, stating, “[Warner Bros Pictures] has an incredible track record of success with the most valuable franchise properties, the best relationships in the creative community and an extremely talented executive team.” His words acknowledged Warner Bros.’s proven industry leadership and the attractiveness of partnering with such a successful studio.
Reports prior to the official announcement indicated Warner Bros.’s proactive search for a major co-financing deal to replace the funding previously provided by Legendary. Bank of America Merrill Lynch and Dune Capital were reportedly involved in structuring a financial vehicle, with Dune expected to contribute a significant equity portion. Mnuchin confirmed that the groundwork for the deal had been laid months in advance, showcasing the deliberate and strategic nature of this partnership formation.
Dune’s prior successful financing arrangement with 20th Century Fox, which spanned multiple renewals and supported massive hits like “Avatar” and “Life of Pi,” provided a strong precedent for this new venture with Warner Bros. However, Fox had opted for a different financial strategy that year, paving the way for Dune to partner with Warner Bros. Meanwhile, Legendary Entertainment sought a new studio partnership and ultimately aligned with Universal Pictures, marking a significant reshuffling of studio financing alliances in Hollywood.
The Warner Bros.-Legendary partnership had been in place since 2005 and had funded numerous blockbuster films, including “Inception,” “Man of Steel,” the Dark Knight trilogy, and the Hangover series. The end of this era underscored the constantly evolving nature of studio financing and the necessity for studios like Warner Bros. to adapt and secure new funding streams to maintain their production capabilities.
Brett Ratner, co-founder of RatPac-Dune, is well-known for directing the Rush Hour trilogy and other successful films, and has transitioned into production. James Packer, the other co-founder, is a prominent figure in the Australian media and entertainment industry. Their combined expertise in film and entertainment ventures positioned RatPac-Dune as a valuable partner for Warner Bros.
This strategic alliance between Warner Bros. and RatPac-Dune Entertainment represented a pivotal moment for film financing, ensuring that Warner Bros. could continue to deliver blockbuster movies and potentially launch new franchises that could resonate with audiences as strongly as The Hangover had in its time.
