Hopscotch acquired by Entertainment One
Australian distributor Hopscotch Films has been acquired by distributor and sales agent Entertainment One, for $20m.
“The Australian market presents an exciting opportunity for eOne, both to build on its existing operations worldwide and to acquire and exploit film titles for a larger group of territories,” said Entertainment One’s president and CEO Darren Throop.
The deal allows eOne to expand its international film distribution infrastructure, adding to its operations in Canada, the UK, Benelux and the US. The acquisition will also enable eOne to have direct access into the Australian market for exploitation of the television titles produced by its own television business.
“This deal enables Hopscotch to flourish as part of a larger international group. It’s clear that eOne has successfully built a unique multi-territory film distribution operation,” added Hopscotch managing director Troy Lum.
According to Entertainment One, the deal is payable by the issue of 4,126,636 million common shares in Entertainment One and approximately $10m in cash. It will be completed in early May. The management team of Troy Lum, Frank Cox and Sandie Don is expected to remain in place.
Entertainment One reported that in the 2009/2010 financial year, Hopscotch generated unaudited revenue of $18.5m and EBITDA of $2.95m. The new oners expect the deal to enhance the Earnings per Share (EPS) in year one.
EOne got a great deal there! I would have though Hopscotch would be worth more than just $10m in cash and another $11m in stock options. Didn’t Mao’s Last Dancer gross almost $20m. Very strange!
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Well, take 33% average that the distributor would get from the $20mil, take out P&A from that, then take out general marketing expenses/overheads and then give the producers their share. That whittles it down a little. And their gross of $19mil or so was worldwide, not in Australia.
But having said all that, Roadshow was the distributor, Hopscotch had New Zealand (theatrical).
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@Deano here would be a very rough breakdown of Mao’s last Dancer:
Mao’s Last Dancer was co-distributed by Roadshow and Hopscotch.
Approx $20m at box office (Australia only) =
Less: $10-12m (50-60%) exhibitor cut
Less: $3-3.6m (30%) distributor fee (Hopscotch & Roadshow)
= $7-4.4m Adjusted Gross
Less: $1-2m P&A, Shipping, Collection, Taxes, Fees
=$2.6-3.4m Net Receipts
Less: $25m negative cost (production budget)
= $21-22.4m Net loss (based on theatrical revenue only – usual rul eof thumb for good Box Office is doing about the same on DVD / VOD / Video)
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Hi. I think they need to work on customer service. I can’t get the tickets I purchased on line and keep getting an automated response saying thanks for your inquiry! But no real response! Starting to get worried! And a little annoyed
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