Jamal Awil

← Derivative Media

Ellison's bailouts distort independent film financing markets [causal]

In 2019, there were reports of "restructuring" at Annapurna amid bankruptcy rumors after burning through $350 million of credit and a series of films that failed to turn a profit. Larry Ellison leveraged his own relationship with the lenders, including banks such as JPMorgan and Wells Fargo, to pay off the debt at 80–85 cents on the dollar. Banks don't make a habit of angering the eighth wealthiest man in the world. Megan's record of financing over-budgeted, underperforming films and then getting her father to bail her out is not good for the filmmaking community; it deters other investors and artificially raises prices. The independent film infrastructure is fragile at the best of times, reliant as it is on festivals, passionate creators, dedicated workers, and word-of-mouth. Inexperienced heirs throwing around money is destructive to the overall health of the industry.

XREF: Connects to broader dynamics of nepotism and wealth distorting creative industries.

Andrew deWaard, Derivative Media, loc. 277