Despite the fact that Flushed Away is exceeding expert's projections during its first two weeks in North American theaters, DreamWorks announced today that they're taking a "write down" on the film, declaring after 13 days of release that they expect to lose money on the film. The linked article goes on to say "The extent of the write-down depends on factors such as domestic and international theatrical results, revenues related to worldwide free and pay television, home video sales, and distribution and marketing costs, DreamWorks said." In other words, it will be a good nine months to a year before anyone knows how the film will ultimately do worldwide, in theaters and on DVD, but why wait? . . .
This Bloomberg article goes into more detail, especially about the already anticipated Paul Allen stock sell off. As was previously noted, it's in Mr. Allen's interest to sell these shares when the stock is at its lowest, so that his remaining shares will be worth more. The article also notes that the company may buy back some of it's own stock, so that's a second incentive for the stock to be lower for right now. One wonders if the seeming rush to write down Flushed Away is more related to those factors, and less to how well the film is actually doing?