Why don't more I-banks finance Hollywood films?

onebuck's picture
Rank: Senior Baboon | 248

So I was reading this article the other day about how certain Hollywood films are financed by international investors.

And started wondering to myself. Why don't any Wall Street firms have divisions that provide the financing for certain Hollywood films?

I mean there have been some rare instance where that has happened (e.g. ML helping finance Iron Man) and ML probably made a ton of money based on how the movie is doing at the box office.

Obviously there's a lot of due diligence that would have to be conducted on the film, but considering the investor gets to purchase the film and the studio basically pays the investor a lease and some sort of repurchase agreement if the movie becomes successful, I don't see why more investment banks look to expand into that space.