Intertainment Buys European Rights to Films for $125 Mln

Frankfurt, March 5, 1999 (Bloomberg) - Intertainment AG, a German film licensing and production company, said it bought the European marketing rights of a group of U.S. movies for $125 million from Franchise Pictures, a U.S. production company. The Munich-based company bought the rights for more than 10 productions, which star Julia Roberts, Richard Gere, Robin Williams, Michael Douglas and Wesley Snipes, at the AFM, the Los Angeles film convention for independent producers. Intertainment, which will pay the $125 million over two years, received the marketing rights for Germany, France and the Benelux countries as well as Eastern Europe for the next 25 years. Intertainment is one of a growing number of media companies, including EM.TV & Merchandising AG, a children's TV program distributor, Kinowelt Medien AG, Germany's second- largest film distributor, that sold shares on Frankfurt's Neuer Markt. Intertainment's shares rose almost sixfold since last month from their initial price of 36 euros ($39). Franchise Pictures, one of the largest independent producers in the U.S., bought all of the marketing rights to the films, which have production budgets of $500 million in total. In the U.S., the films will be marketed by Warner Bros. Intertainment, which markets rights to U.S. films to cinemas and TV channels, also secured licenses for other U.S. films, including ``Battlefield Earth'' starring John Travolta and ``The Whole Nine Yards'' with Bruce Willis as well as ``Hospitality Suite'' with Danny de Vito. The company has the rights to market these films in Germany, France and the Benelux countries in the next 25 years. Last month, the company signed an agreement with the United Nations Children's Fund to cooperate in UNICEF's German merchandising for Christmas 1999. Intertainment and UNICEF signed a five-year contract to cooperate in cinema, video, television and music merchandising for the Christmas season. Intertainment's shares rose as much as 17.99 euros to 219.99.

03/05/1999
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