off to memphis new deals emerging - film deal in Memphis,...

off to memphis new deals emerging - film deal in Memphis, consolidating theme parks, and possibly selling part of the movie business to Crescent. Lets hope they know what they are doing.

litigation with Ziegler still hanging over VRL, good if that could be resolved.

article;

"VILLAGE Roadshow is gearing up to bring a little Hollywood magic to Memphis, according to US reports linking the Australian company's movie production business to a deal that could see it spend $US250 million producing movies in the city over five years.

The Daily News in Memphis named Village Roadshow Pictures Group, which backed movies like Charlie and the Chocolate Factory in partnership with Warner Bros, as the company negotiating with local politicians over incentives to invest in the city.

The proposed deal includes setting up a sound stage and production offices that would act as a supplementary location to its movie production operations in Los Angeles and Australia, the report said.

"It's not ours to talk about - it's theirs," Jan Austin, deputy director of the Tennessee Film, Entertainment & Music Commission, told the News in reply to questions about Village Roadshow's involvement.

Village Roadshow executives did not return calls last week.

The movie production business has proved a volatile investment for Village Roadshow, and not just because it has lost money in the last two years, including a loss before tax of $32.3 million in 2005-06.

The company is still awaiting a decision from the Supreme Court in Victoria on its legal dispute with former chief executive Peter Ziegler, who is seeking $87 million plus a share of Village Roadshow Pictures. The case relates to his development of the movie production business during his tenure.

Village Roadshow reined in its exposure to its film production subsidiary last year in a deal that could hand half the business to its new US partner, Crescent, in return for around $150 million in funding.

The movie production business has managed to survive the restructure of Village Roadshow, which has led to the company retreating from its global cinema exhibition business while expanding its interest in theme parks.

Just last week Village Roadshow consolidated its hold on the Gold Coast theme park business, acquiring the remaining half stake in the Sea World Nara Resort for $20 million plus bank debt of $5.5 million.

The various changes took a toll on last year's results. The company reported an after-tax loss of $35.1 million which included legal settlements, the financial restructure of the film business and write-offs from acquisitions and discontinued businesses.

The company also controls the Austereo radio network, which has been named as a potential takeover target if changes to media ownership laws go through.

Village Roadshow sold nearly $40 million worth of shares in Austereo last week, trimming its stake to 63 per cent.