Media rights group Entertainment Rights, which owns TRANSFORMERS, HE-MAN, CASPER THE FRIENDLY GHOST, WHERE'S WALDO and VEGGIETALES, posted a loss of $169 million over the last eight months, per KIDSCREEN.
Under new CFO Edward Knighton, the company will embark on a debt reduction program. Deals with DVD distributor Genius Products and extensions with U.S. broadcasters could create a cash flow of more than $20 million, but the final touches on those agreements may not come this year.
THE GUARDIAN reports Friday that ER has slashed the value of many of its popular characters, including Basil Brush, an admission that the current economic climate is likely to affect merchandise and DVD sales.
Most of the current debt was taken on two years ago when ER bought up enough global brands to make it the largest independent owner of children's brands in the world, including Lassie and The Lone Ranger. ER failed, though, to fully integrate the new businesses, including U.S.-based Classic Media, and costs ran high. Profits were hit again when ER had problems with a DVD distributor.
A bright spot for ER is the upcoming THE LONE RANGER film from Disney starring Johnny Depp and produced by Jerry Bruckheimer. Depp's turn as sidekick Tonto will likely boost Lone Ranger merchandise. ER is marking this year's 75th anniversary of the character with the release of a collector's edition DVD and a range of merchandise coming later this year.
