Now that Valkyrie looks like it is going to make a serious run at the Oscars and the Box Office on behalf of its director and star, best to check in with United Artists, Tom Cruise and Paula Wagner’s production company most recently pegged by us as in dangerous, shark-filled waters.
Looks like things might be worse for Paula Wagner than they are for Cruise, if that’s even possible. Rumor going around Hollywood is that Wagner has had difficulty greenlighting projects and meeting deadlines, putting some of UA’s $500 million Merrill Lynch financing in jeopardy.
As with all studio execs who lose the edge of risk, and it got Wagner ousted from United Artists, causing quite a bit of stir.
On one hand, Crusie and Wagner will remain co-owners of the company, but Wagner has completed negotiations to step down as UA’s CEO so parent company MGM can step in and greenlight some films under the United Artists banner before Merrill pulls some of Wagner’s credit line. If MGM can put a go-stamp on two pictures for UA by the trigger dates, they might be able to save the entire kitty, at least ensuring their survival through the Valkyrie release.
UA and their $500 million only managed to get 2 films off the ground, the aforementioned Valkyrie and Lions For Lambs (previously mentioned as a failure). This is highly frustrating for MGM which has sat back and watched half a billion dollars fester and rot, waiting for Wagner and Cruise to come up with another Cruise vanity project.
Wagner’s out, MGM is in and something is going to happen to UA soon.
Official statements from the concerned parties after the cut!
From MGM:
Paula Wagner, Chief Executive Officer of UA, has decided to leave her day-to-day responsibilities and return to her first love, which is producing films. As such, MGM and UA confirmed today that Ms. Wagner will transition to the role of a producer under her own independent production shingle and be attached to UA’s most exciting film properties. In November 2006, United Artists was reborn under a partnership formed between Tom Cruise, Ms. Wagner and MGM. Ms. Wagner will continue to be a part owner of UA and hold a significant stake in UA’s future success. Nothing will change in regard to Mr. Cruise’s involvement with UA and he continues to have a substantial ownership interest in the company. Furthermore, Mr. Cruise and Ms. Wagner will continue to work on film projects together.
From Paula Wagner:
I’ve truly relished working with my longtime partner Tom Cruise to revitalize United Artists, and I am proud of all that we’ve accomplished in the past two years, reinvigorating the brand and developing such a strong slate of films. But I always tell my sons, ‘Follow your passion’ – and I’ve got to follow that advice myself. As much as I’ve enjoyed my time as an executive, I have longed to return to my true love, which is making movies, so that’s what I’ve decided to do. I still believe in our vision for UA, and I am confident that Harry Sloan and our colleagues at MGM will see that vision through to reality.
