Warner Bros., a powerhouse in Hollywood known for blockbuster franchises and critically acclaimed films like the wildly successful “Hangover” series, has solidified a significant financial partnership to fuel its upcoming movie slate. The studio has finalized a four-year co-financing agreement with RatPac-Dune Entertainment, a venture led by former Treasury Secretary Steven Mnuchin, filmmaker Brett Ratner, and Australian billionaire James Packer. This strategic alliance is set to inject up to $450 million into Warner Bros.’ film production, ensuring the studio remains a dominant force in the global entertainment industry.
This move comes after Warner Bros. concluded its long-standing financial partnership with Legendary Entertainment. The RatPac-Dune deal signifies Warner Bros.’ proactive approach to maintaining its production capabilities and managing financial risks in the ever-evolving movie business. The first film to be backed under this new arrangement is “Gravity,” starring Sandra Bullock and directed by Alfonso Cuaron, which premiered at the Venice Film Festival to rave reviews and is poised for a wide release.
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The co-financing agreement extends across various genres and budget ranges, encompassing films from Warner Bros. and its New Line Cinema division. However, it excludes projects already under co-financing deals with Village Roadshow and Gulfstream, distribution agreements with Alcon, and franchise behemoths like Harry Potter, Lord of the Rings, and The Hobbit. Another notable title included in this financing deal is the comedy “Grudge Match,” starring Robert De Niro and Sylvester Stallone, slated for a Christmas release.
Warner Bros. CEO Kevin Tsujihara expressed enthusiasm about the partnership, 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.”
Warner Bros.’ consistent performance at the box office underscores the significance of this financial bolstering. The studio boasts an impressive track record, frequently ranking in the top two domestically for the past decade. This year alone, Warner Bros. has released six films that have surpassed $200 million globally, including “We’re the Millers,” “The Conjuring,” “The Great Gatsby,” “Pacific Rim,” “Man of Steel,” and notably, “The Hangover – Part III,” which grossed $360 million worldwide, demonstrating the studio’s knack for producing films that resonate with global audiences and achieve substantial commercial success. The “Hangover” franchise, in particular, exemplifies Warner Bros.’ ability to create and nurture properties that generate significant revenue and cultural impact.
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Mnuchin also conveyed his confidence in Warner Bros., remarking, “[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.”
The groundwork for this deal was laid months prior, with Variety reporting in July about Warner Bros.’ discussions with Bank of America Merrill Lynch and Dune Capital to secure a co-financing arrangement to replace the departing Legendary Entertainment. Dune Capital was expected to contribute a substantial portion of the equity, around $150 million, in the deal facilitated by Bank of America.
Dune Entertainment brings a proven history of successful film financing partnerships to the table. Their previous collaboration with 20th Century Fox, spanning multiple renewals, contributed to the financing of mega-hits like “Avatar,” “Life of Pi,” and numerous other successful films. While that partnership concluded as Fox pursued a slate deal with Chip Seelig, Dune’s track record speaks volumes about their expertise in film investment.
Legendary Entertainment, after deciding against renewing its Warner Bros. deal, sought a new home and ultimately partnered with Universal Pictures. Legendary’s commitment to Universal involves significant annual investments in Universal films and its own projects, highlighting the continued importance of co-financing deals in the contemporary film industry. The Warner Bros.-Legendary partnership, dating back to 2005, funded numerous blockbusters, including “Inception,” “Man of Steel,” the “Dark Knight” trilogy, and the “Hangover” series, solidifying its legacy of successful collaborations.
Brett Ratner, a key figure in RatPac-Dune, is recognized for directing the “Rush Hour” trilogy, as well as films like “Red Dragon,” “X-Men: The Last Stand,” and “Tower Heist.” His production company, Rat Entertainment, has credits on films such as “Mirror Mirror” and “Horrible Bosses.” Ratner is also involved in directing and producing the upcoming “Hercules” starring Dwayne Johnson. His partnership with James Packer, forming RatPac Entertainment, combines Ratner’s filmmaking expertise with Packer’s financial acumen and entertainment industry background as chairman of Crown Limited. Packer’s lineage as the son of media mogul Kerry Packer further underscores the deep industry connections and experience brought to this new venture with Warner Bros.
In conclusion, the partnership between Warner Brothers and RatPac-Dune Entertainment represents a strategic move to ensure the studio’s continued production of high-caliber films. Building on a history of box office successes, including franchises like “The Hangover”, Warner Bros. is positioning itself for future growth and sustained leadership in the global film market through this significant financial alliance.
