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Hedgies To Star In Cruise Production Co.
But which ones?
But which ones? So far, it appears no one is speaking and no one is leaking. This week, actor Tom Cruise was axed from Paramount Pictures after 13 years for recent off-screen behavior unbecoming the Viacom-owned studio. Viacom Chairman Sumner Redstone estimates that the actor’s antics, often described in the media as “bizarre,” cost Paramount up to $150 million in ticket sales. That’s showbiz. Cruise is sailing into new waters for him and partner Paula Wagner, who are now on their own with their 13-year-old venture Cruise/Wagner Productions. When under contract with Paramount, C/W got $10 million a year to develop films. With the breakup, the actor-driven company has enlisted the help of two yet-to-be identified hedge funds, one in New York and one Los Angeles. Perhaps the news took everyone by surprise, because at press time, there was still not any speculation as to which hedgies have signed up to supply around $100 million for the mission possible. The identity crisis was expected to end with an announcement soon. However, until such time, The New York Times’ Dealbook reminds us of hedge funds that have invested in the film business in the past: Soros Capital Management spinoff Dune Capital Management and Stark Investments, which reportedly lost $50 million from funding the sunken remake of Poseidon Adventure.