Hollywood Stock Review

Following and Finding Hollywood's Top Performing Stocks.

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Hollywood Stock Review Online, Monday 7/07/2008.


Chicago 73...87F. Cloudy.
Los Angeles 65...79F. Fair. (200)
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Table Of Contents:

1. Platinum Studios (PDOS) $0.15, Sample Video Game Contract.
2. Disclaimer.

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Below you will read things which are rarely made public in Hollywood (with the exception of some publicly traded companies) and quite an interesting read.

1. Platinum Studios (PDOS) $0.15, Sample Video Game Contract.

If Platinum Studios (PDOS) performs like we think it will (mid to long-term out) -- and you've read our postings on the company -- and you didn't participate, you will have no one to blame but your self. And we understand the hesitations of keeping liquid, in an otherwise illiquid market. On the other hand, the best we've ever done, has always had it beginnings in markets similar to this.

The two periods which come to mind would be the most grueling of all "water-boarding" bear markets -- which started in August of 1990, when the late Saddam invaded Kuwait. Even though the market only went down 10% in the next 5 months -- there was no reason for anyone to buy anything; with the exception for those who like to buy large blocks of stocks on the cheap.

The next period was in late 2001. That's when you could buy Amazon (AMZN) for $7.20 (Oct of 2001) and you, or Microsoft or Carl Icahn could have bought Yahoo (YHOO) for $4.34 (Sept of 2001).

Now of course we didn't know then, that those were great periods to buy stocks. We just thought we'd share that with you and mention that this market "feels" similar to those.

Back to Platinum Studios. The two postings which we think we can look back to a couple years from now if the stock is trading 10 times higher than where it is today and we ask ourselves, "was there something we could have seen back then.....," would be the 8K from 6/20 (feel free to write these down) where Platinum received a valuation of its intellectual property which consists of a library of comic characters -- for $150 million:

8K #1: http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=5739095

And then today's 8K from 7/07. Which we'll call 8K #2.

(Some people can't get a grasp on the "broad" potential of revenue earning opportunities of the comic characters. This 8K spells it out.)

Big picture, here is a very clear and very detailed example of 1 potential revenue source, from 1 comic character, that hasn't even gotten to the big screens yet -- "Cowboys & Aliens" and potential Video games.

(All sources would be participations in the movie, participations in merchandising and licensing, participations in digital publishing and participations in print publishing.)

8K #2: http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=5766008

We suggest you read the whole thing, but here are some excerpts:

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On June 30, 2008, Platinum Studios, Inc. (the “Company” or “Platinum”) entered into a License for Software Development and Distribution Agreement (the “Agreement”) with Brash Entertainment, LLC (“Brash”). Under the terms of the Agreement, the Company is granting to Brash a non-transferable, exclusive license to develop and release video game products based on the graphic novel “Cowboys & Aliens” delivered on a variety of electronic platforms, including Microsoft Xbox 360, Sony PlayStations 2 and 3, Nintendo Wii, as well as through the internet and via wireless handheld devices...

Under the terms of the Agreement, Brash is required to make the following payments to Platinum:

A) a minimum amount of $250,000, of which $125,000 was paid following execution of the Agreement, and the balance of which is payable no later than July 31, 2008;

B) a production fee, payable as follows: (a) $125,000 payable upon the earlier of (i) commencement of production of the first video game, or (ii) the date on which the motion picture upon which the video game is based is greenlit for production (as such terms are commonly understood in the film industry) by a major motion picture studio with a budget of no less than $60 million; and (b) $125,000 payable upon the earlier of (i) Platinum’s approval of the Gold Master version of the first video game; or (ii) the theatrical release of the motion picture upon which the video game is based.

(Then) a royalty from the net sales of all formats of the video games as follows:.

A) Console and Handheld Platforms: 8% of net sales on sales of 1 to 600,000 units sold and not returned; and 10% of Net Sales on sales of 600,001 + units sold and not returned.

B) First Party Platforms: 10% of all revenue received by licensee in connection therewith, less any unaffiliated third-party costs.

C) Mobile: 25% of all revenue received by licensee in connection therewith, less any unaffiliated third-party costs.

D) Digital Distribution: 25% of all revenue received by licensee in connection therewith.

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If you read the whole contract, you'll see there is even provision rights to sequels !

Sweet.

Oh and about Brash Entertainment:

Committed to establishing long-term relationships with leading film studios, to date Brash has announced partnerships with Lionsgate Films, Twentieth Century Fox Licensing and Merchandising, Universal Studios Licensing and Vanguard Animation and Warner Bros. Interactive Entertainment. The company currently has more than 40 licenses through partnerships with major film studios and 12 games in production.

Brash's innovative business model relies on matching each licensed project with the skills of the best independent development studios, top writers and creative talent. This collaboration is guided by an internal team of experienced producers, under the leadership of video game industry veterans. By collaborating closely with top creative talent from both Hollywood and the game industry, Brash will deliver deeply satisfying games that extend the filmmakers' vision into the best possible entertainment experience...

http://www.brashent.com/company_leadership_davis.aspx

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