I was reading today’s Wall Street Journal, that The Hunger Games has added more than one billion dollars to the valuation of Lions Gate, the studio behind the film.
It’s kind of hard to imagine a single movie could lead to so much value, but this is going to be a big film and a big series. The paper says that if the movie does $300 million in revenue, then Lions Gate would probably make about $100 million. Add home video, TV and the other channels and you could get that up by another $200 million. That would yield $300 million. If they turn the books into 4 movies that do about that amount of business and you’re looking at $1.2 billion in in profits.
That’s a pretty big number for The Hunger Games to do, but with the spin off potential, I think that might just be reasonable. Lions Gate dropped 5.4% today, so who knows what the street will do when the movie is finally released.
Just one more exciting thing to watch for this simple book. If you haven’t heard the story, I suggest you get the Hunger Games audiobook and enjoy the story first hand.