Disney Sued for Tampering with Deal, $40 Million Debt

Publication date: August 18, 2023

Disney sued for tampering with deals, $40 million debt to capitalists

by Movieguide® contributors

Disney is being sued for allegedly falsifying a contract between 20th Century Fox and TSG Entertainment Finance.

TSG alleges that Disney interfered in the deal to boost Disney+ and Hulu subscriptions, stock prices and executive salaries. They sued 20th Century Fox for breach of contract and Disney for induced breach.

The company also claims that an independent audit of the three films found it owed more than $40 million, which it suspects could total hundreds of millions of dollars.

deadline report“Following Scarlett Johansson’s lawsuit over the 2021 release of ‘Black Widow’ in theaters and Disney+, TSG has made a number of moves aimed at Disney building its own streaming nest. He claims he did.”

“This glazing of film distribution is intended to maximize profits for studios (and stakeholders such as TSG) by preventing one source of distribution revenue from cannibalizing another. ‘ said the lawsuit. said. “But when windows overlap each other, studios (and their investors) miss out on an important potential revenue stream.”

suit continuation“At its core, this is how two Hollywood giants with a long and disgraceful history of Hollywood accounting, Defendants Fox and Disney, can use nearly every trick of Hollywood accounting strategy to It’s a terrifying example of how they tried to disenfranchise the plaintiffs TSG, who invested more than $3.3 billion out of their hundreds of millions in good faith.” [per CNBC].

TSG attorney John Berlinski said: Said“Disney (and its executives) will resort to any means to profit by manipulating the distribution of Qualifying Films or preventing TSG from liquidating its interest in certain tranches of Qualifying Films. We have and will have every incentive.” Disney’s stock price is built at the expense of TSG and other interested parties. ”

Movieguide® recently reported on the Disney+ price hike:

In its third quarter financial report, Disney announced that it will increase the price of Disney+ later this year. This decision has pushed many consumers to a breaking point for this service.

The media giant has announced the cheapest ad-free plan for Disney+. Jump from $10.99 to $13.99 per month. This is his second price increase in less than a year, and the platform’s subscription numbers have increased by a total of 75%.

In announcing the change, Disney CEO Bob Iger shared an insight into the previous price increase.

“At some point in the second half of 2022, we implemented a significant price increase on Disney+, and we didn’t really see any significant churn or subscriber decline from it, which is actually very encouraging. I did,” said Iger.

Even if the company expected a similar response to its latest changes, it didn’t get it.After the announcement, “Cancellation of Disney Plus” trending all over social media.