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They made a token attempt to sell it, but then rejected reasonable offers from Netflix, Amazon, and Paramount which were likely north of 40 million dollars at l
by tracerbulletx 3y ago
They made a token attempt to sell it, but then rejected reasonable offers from Netflix, Amazon, and Paramount which were likely north of 40 million dollars at least.
- add-sub-mul-div 3y agoThe writeoff is reported to be $35-40m. Which I believe means that selling the film for $40m would be a big loss because that's taxable income whereas the writeoff is a straight up $40m net gain. So they might need a $70-80m offer for it to be worthwhile.
- gruez 3y agoa $35-40M write-off doesn't mean you save $35-40M in taxes. It means you don't have to pay taxes on $35-40M worth of income. If the corporate tax rate is 30%, you're only really saving $12M.
- heyoni 3y agoDoesn’t the write off just reduce your taxable earnings by $40million? Are you saying that their tax bill will actually go down by that much instead of some fraction of it?
- add-sub-mul-div 3y agoThe actual budget of the movie was higher than $40m. This is just the number that's been reported as the net value of the writeoff. But I have no real info, it's possible this has been reported vaguely, incorrectly, or based on rumor.
- heyoni 3y agoSorry I was asking about how taxes worked. Your comment made it sound like they can subtract $40million off of their tax bill because they lost that much to this movie but maybe you didn't mean that. I imagine the write off means their revenue is considered to be $40 million less and so they're taxes on a lower number, meaning selling a movie for $40million could still be worth it.
- add-sub-mul-div 3y agoI've seen people running with the assumption that it's a net $40m gain for the studio, but that could be incorrect.