Hollywood for Sale ... But No One's Buying
"If the industry needed a wake-up call that times have changed – it has gotten one.
The problem seems to be a clash between the perceived values of the movie companies and the values the market is willing to assign at a time of flux.
Throughout these attempted sales, analysts have raised the thorny issue of library valuation – concerned that the revenue being generated this year for movie titles will not be sustainable in a market of declining DVD sales.
Said Vogel: “There is no doubt that values have been diminished, and companies are gunshy about being criticized for overpaying. They did that for 10 or 20 years, and they don’t want to do it again.”
He added: “The people who are trying to sell have the old mentality – content is king; we have these libraries that are so valuable. I don’t think the two sides have really met. The evidence of that is clear -- there are no deals.”