Sources say the tech powerhouse paid nearly more than $ 500 million for Abrams' production company Bad Robot, which had eventually withdrawn less money from its home
After a yearlong trial in which J.J. Abrams and his wife and Bad Robot partner Katie McGrath meet with technology giants and traditional studios. Ultimately, the duo decided to take less money than they could have made to stay with WarnerMedia.
According to sources familiar with the deal, Bad Robot's has announced the Thursday's five-year pact worth at least $ 250 million, and possibly much more, thanks to various financial incentives. There, Abrams and the company will develop and produce new film, TV, video game and digital projects for WarnerMedia's various businesses, including Warner Bros., HBO and the upcoming HBO Max streaming service. Warners has been Abrams' television house since 2006, and the new partnership brings Bad Robot's film production, which ran through Paramount, under one roof for the first time.
That is, Lisey's story of founding one of his three shows at Apple over Warner Bros. TV was of paramount importance to Bad Robot signing somewhere. It's also one of the reasons why Bad Robot left millions of dollars on the table and said goodbye to a potentially record-breaking blockbuster deal with Apple.
Abrams and McGrath Should Be Intended to Get Bad From robots became a consumer brand, and so they met with Apple executives, including video heads Zack Van Amburg and Jamie Erlicht, to discuss how the iPhone maker made one possibly take big financial share in his business. Bad Robot came to Highly Appraisal Meetings and sought a financial agreement that would have rated Abram's future $ 1
Meanwhile, Apple is said to have offered a deal worth $ 500 million, with Bad Robot working exclusively for Cupertino. However, several factors led to Bad Robot finally deciding to bypass the sensational business. Among them was the desire of the hardware manufacturer that Bad Robot creates new projects for Apple only – which means that Abrams will not participate in external projects for companies such as Disney ( Star Wars ) or Paramount () should have been allowed to work. Star Trek (19459006) and TV projects would not be sold to third parties. Also worrying was the lack of a distribution model for the cinema at Apple. A significant portion of Bad Robot's revenue comes from the blockbuster features that Abrams controls (hence the estimate of $ 1 billion in revenue). Another problem was Apple's lack of IP address, which Abrams could adapt to the business. Paramount, for example, could offer Abrams the Star Trek movie franchise when he was under contract there. Some in the TV community speculated in recent weeks that Abrams would enter into a deal worth $ 750 million to $ 1 billion with Apple, but was unimpressed and reluctant by the March presentation in Cupertino. (Sources near Abrams and Apple categorically deny that his decision to sign up with WarnerMedia has anything to do with this presentation.)
For WarnerMedia, CEO John Stankey made his personal mission to sign a new contract with Bad Robot complete. Sources say McGrath – who is also a founding member of Time's Up – unambiguously told Stankey that the continued presence of Kevin Tsujihara, CEO of Warner Bros., was a "value" issue as she and Abrams were options of their company. Tsujihara resigned on March 18 after The Hollywood Reporter published texts indicating that the executive had embarked on an affair with actress Charlotte Kirk, and then tried their roles in Warner's shows and movies to help.
With the values WarnerMedia, Abrams – which is also expected to create original franchises for film and television – offered a deep IP bank and a longstanding relationship with Peter Roth, president of the Warner Bros. TV group (the Stankey and Abrams picked on Thursday) announcement). The WarnerMedia Pact is believed to include at least a partial stake in Bad Robot, although this fact – and whether Abrams will have the opportunity to work on other functions outside of its already-concluded contracts – is kept secret. Sources familiar with the deal say it's less about money than the greater opportunities offered by an established media giant like WarnerMedia. Abrams is said to want a certain number of guaranteed slots at Warner Bros. & # 39; Movie release calendar, although it is unclear whether this was included in the new agreement. With Warners, Abrams has the ability to create new features that could enable his new deal to reach billions if he is able to start a successful franchise business.
While Abrams' five-year deal of $ 250 million compared to the $ 300 million low appears $ 400 million, Ryan Murphy and Greg Berlanti have been able to multiply that number by Netflix and Warner Bros. TV, respectively see is enormous. (And it's worth noting that Berlanti and Murphy's deals were so rich because Warners and Netflix have bought the profit share of the prolific producers in several shows.)
At the end of the day, Stankey was able to sign the biggest movie and biggest television Producer on the planet, and Abrams and Bad Robot still have the ability to sell new projects to third-party providers – and still earn that $ 1 billion.
Representatives of Bad Robot, Apple and WarnerMedia refused to participate in this story.