Comments on: The Bail Out http://dealfatigue.com/2008/09/30/the-bail-out/ Just Minding My Business Thu, 26 Nov 2009 02:45:54 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Peter Kaufman http://dealfatigue.com/2008/09/30/the-bail-out/comment-page-1/#comment-617 Peter Kaufman Mon, 13 Oct 2008 11:01:27 +0000 http://dealfatigue.com/?p=210#comment-617 Dan, <br><br>I tend to agree with you but not necessarily for the most obvious reasons. Many VC's take a shotgun approach to investing. In the current economic environment, I think that VC's will be more cautious and conservative. I also expect them to be more aggressive in negotiations. So yes, the Web 2.0 startups as well as others will - by necessity - have to be good. Dan,

I tend to agree with you but not necessarily for the most obvious reasons. Many VC's take a shotgun approach to investing. In the current economic environment, I think that VC's will be more cautious and conservative. I also expect them to be more aggressive in negotiations. So yes, the Web 2.0 startups as well as others will – by necessity – have to be good.

]]> By: Peter Kaufman http://dealfatigue.com/2008/09/30/the-bail-out/comment-page-1/#comment-538 Peter Kaufman Mon, 13 Oct 2008 04:01:27 +0000 http://dealfatigue.com/?p=210#comment-538 Dan, <br><br>I tend to agree with you but not necessarily for the most obvious reasons. Many VC's take a shotgun approach to investing. In the current economic environment, I think that VC's will be more cautious and conservative. I also expect them to be more aggressive in negotiations. So yes, the Web 2.0 startups as well as others will - by necessity - have to be good. Dan,

I tend to agree with you but not necessarily for the most obvious reasons. Many VC's take a shotgun approach to investing. In the current economic environment, I think that VC's will be more cautious and conservative. I also expect them to be more aggressive in negotiations. So yes, the Web 2.0 startups as well as others will – by necessity – have to be good.

]]> By: Peter Kaufman http://dealfatigue.com/2008/09/30/the-bail-out/comment-page-1/#comment-537 Peter Kaufman Fri, 10 Oct 2008 16:11:34 +0000 http://dealfatigue.com/?p=210#comment-537 True. What's different now compared to other economic downturns is that there is no viable access to the credit markets. The entertainment business (like the textile business) needs to be able to bank its commercial paper; to obtain money from lenders based on the secured contractual commitment from another party (e.g., a studio) to pay on delivery of a picture. Without that, there could be a freeze of most of these transactions. The good news appears to be that the Fed's tactics (and those of other governments around the world) appears to be working albeit slower than we would like so these funds should be available soon (whatever soon means). True. What's different now compared to other economic downturns is that there is no viable access to the credit markets. The entertainment business (like the textile business) needs to be able to bank its commercial paper; to obtain money from lenders based on the secured contractual commitment from another party (e.g., a studio) to pay on delivery of a picture. Without that, there could be a freeze of most of these transactions. The good news appears to be that the Fed's tactics (and those of other governments around the world) appears to be working albeit slower than we would like so these funds should be available soon (whatever soon means).

]]> By: steven corn http://dealfatigue.com/2008/09/30/the-bail-out/comment-page-1/#comment-535 steven corn Fri, 10 Oct 2008 03:07:22 +0000 http://dealfatigue.com/?p=210#comment-535 I think that the entertainment biz, especially the music biz, is generally recession-proof. when times are good, people spend money on such things. when times are bad, they cut out vacations instead of movies. I think that the entertainment biz, especially the music biz, is generally recession-proof. when times are good, people spend money on such things. when times are bad, they cut out vacations instead of movies.

]]> By: dan360man http://dealfatigue.com/2008/09/30/the-bail-out/comment-page-1/#comment-534 dan360man Mon, 06 Oct 2008 22:50:52 +0000 http://dealfatigue.com/?p=210#comment-534 If anything, Web 2.0 startups will have to be, you know, good.<br><br>Let's stay optimistic, folks! If anything, Web 2.0 startups will have to be, you know, good.

Let's stay optimistic, folks!

]]> By: pkzip5 http://dealfatigue.com/2008/09/30/the-bail-out/comment-page-1/#comment-533 pkzip5 Wed, 01 Oct 2008 04:05:08 +0000 http://dealfatigue.com/?p=210#comment-533 Yes, but only if the movie is produced. Otherwise, you have a really<br>expensive screenplay with minimal resale value. Yes, but only if the movie is produced. Otherwise, you have a really
expensive screenplay with minimal resale value.

]]> By: Jennifer Morrison http://dealfatigue.com/2008/09/30/the-bail-out/comment-page-1/#comment-532 Jennifer Morrison Wed, 01 Oct 2008 03:42:52 +0000 http://dealfatigue.com/?p=210#comment-532 Great points, and it does seem that the silver lining to this economic cloud is the investment opportunities for entities and individuals looking for (dare I say) less risk. After all, depending on the structure of the deal, the elements of the project, and the stage at which the money comes, an investment in a film is comparable to an asset-backed security in that the film itself is valuable intellectual property. Plus, even if the film is aborted due to certain circumstances, the investment is insured. Great points, and it does seem that the silver lining to this economic cloud is the investment opportunities for entities and individuals looking for (dare I say) less risk. After all, depending on the structure of the deal, the elements of the project, and the stage at which the money comes, an investment in a film is comparable to an asset-backed security in that the film itself is valuable intellectual property. Plus, even if the film is aborted due to certain circumstances, the investment is insured.

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