How Bankrupt Marvel Risked Its Main Characters to Save Itself – Cheddar Examines

How Bankrupt Marvel Risked Its Main Characters to Save Itself – Cheddar Examines

It’s December 27th, 1996. After years of bleeding money Marvel just fired one-third of its employees. Shares that had been worth $35.75 cents in 1993, are now $2.38 cents. The company is $610 million in debt. They’re filing for bankruptcy. For the next seven years, Marvel was stock movies like Blade, X men, and Spider-Man were relative successes but Marvel saw a meager percentage of the profits. But one man had a plan to restore glory for Marvel, a plan that risked the rights to their pivotal characters. In 1989, Ronald Perelman bought Marvel for $82.5 million. The billionaire businessman with a signature grin and huge cigar had a long repertoire of turning around dying brands for a profit. He immediately raised prices and pumped out more titles. Initially fans were buying multiple copies of each new comic betting on their eventual high worth. So that, generated a speculator boom, in the same way that any speculator boom happens. So, people were buying 10 copies of a comic and stocking nine of them away in the hopes that they would be worth millions of dollars someday. Within just two years, profits increased tenfold. But what Marvel made in cash the comics lost in quality. Comic sellers at all levels were printing what were called variance and so you’d have a comic with the same inside the same story on the inside but a different cover or a slight a slight variation on the way that it was presented. The pressure for profits was decreasing the quality of the product which was now flooding the market. The rise in future value was becoming increasingly unlikely to double down on profits. Marvel decided to produce more memorabilia, but the industry was shrinking and Marvel was in trouble. We haven’t been too lucky By 1995, chasing profits caught up to Perelman and Marvel. The company reported a loss of $48 million and a debt of $581 million. At this point Perelman knew the future was in film and not in cards or comics. So, he proposed merging Marvel with action figure company Toy Biz to launch Marvel Studios. However, shareholders blocked the plan arguing financial damage to shares would be too great. Perelman filed for bankruptcy in order to continue his plan without shareholder consent. After a two year court case Mr. Perelman’s ties to the company were severed. Marvel was now owned by two Toy Biz executives, Isaac Perlmutter and Avi Arad. Like Perelman, they had a direct target, movies. They knew this was the future but Marvel, fresh out of bankruptcy needed quick cash. So they auctioned the cinematic rights of their characters to Hollywood. The problem was Hollywood executives didn’t see the value and Marvel was forced into unfavorable deals. Marvel movies of the late 90’s and early 2000’s were blockbuster hits. Blade made $70 million in the box office, but Marvel reportedly took in just $25,000. Spider-man made $3 billion off the first two Spider-man movies, but Marvel only saw $62 million total. They were sitting on a goldmine but cut into reap the benefits. David Maisel calls himself a cross between Iron Man and Peter Pan. He lives in a two bedroom rental in LA. He doesn’t have an assistant lawyer or an agent. But Maisel is a multimillionaire whose bold idea defined a generation of film. In 2003, Marvel was getting ready to sell Captain America to Warner Brothers and Thor to Sony Pictures. This is when Maisel stepped in. Maisel met owners Arad and Perlmutter with an audacious plan. Make the movies yourself. Not only would this give Marvel 100 per cent of the profits. But it would also allow characters to cross over stories just like they do in the comics creating the potential for endless sequels. Arad and Perlmutter were eventually convinced but needed the money. It took until 2005 to get a deal. Marvel Inch contributed $525 million over seven years allowing Marvel to make any superhero movie they wanted, but there was one big condition. The collateral was the movie rights to 10 main characters. Marvel Studios was all in. Their first order of business was assembling previously sold characters. They managed to reacquire the rights to characters like Black Widow, the Hulk and of course Iron Man. From their Marvel Studios chose self-proclaimed comic book nut Kevin Fikry as their president, a man passionate about Marvel. On May 2nd, 2008 Iron Man hit the big screen the future of Marvel was at stake. It was an instant blockbuster hit. In the first weekend, the movie pulled in close to $100 million. In total the first film made $585 million. Yeah, I can fly. It was such a massive success that in 2009 at Disney bought Marvel for $4.3 billion. The rest is history. In total, Marvel movies have grossed over $14 billion since Iron Man. That’s roughly 13 percent of the total box office since 2008. In July of 2018, Disney’s shareholders approved the acquisition of 21st century’s film and television studios. Fox previously owned the rights to X-Men, Fantastic Four, and Deadpool. You can bet future movies will be jam packed.

100 thoughts on “How Bankrupt Marvel Risked Its Main Characters to Save Itself – Cheddar Examines”

  1. How are you possibly calculating that Spiderman 1 and 2 earned $3,000,000? What is your source on that?

  2. And now as of today im pretty sure they made over 1.2 billion on the frist day of avengers endgame god dam.

  3. One fact that almost no one knows; Michael Jackson was in the works of buying Marvel Studios way before Disney did.

  4. It was a 1 in 14,000,000 chance that Snipes, Jackman and Maguire could keep marvel floating until the infinity saga.

  5. Marvel always has been better then dc.the actors in marvel movies are more likable and the acting is much better then dc.

  6. It鈥檚 a comic book, so who cares.
    And iron man, Robert JR, was a pompous asshat in every movie. He wanted to pick a fight with everyone, including all the men on the team. Glad he鈥檚 gone.

  7. Why is everybody praising rdj for "saving" Marvel? Didn't you watch this clip. Plenty of people invested into the idea of a mcu before rdj was even a thing.

  8. Ya, and it's sad that Marvel's main focus now is to focus on SJW, Feminism, and Political Correctness propaganda, rather than focusing on character development, and keeping politics out of Marvel movies.
    A fine example is Captain Marvel,
    out of no where, she comes in and is a perfect, Mary Sue, all powerful, strongest Avenger already.
    And Brie Larson is doing further damage by alienating the male audience of Marvel.
    Let's see how much Captain Marvel 2 makes,
    since Captain Marvel 1 was riding on the shoulders of Endgame.
    Marvel has gone woke now.

  9. You can beet your life and all your kids life's endgame WAS THE LAST DISNEY THING I EVER HAD..!! no more money for racist, sexist and political movies of Disney.. They died for me with endgame!!

  10. 飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富飧烩富 says:

    RDJ was a great contribution to the success of Marvel but you guys are just trashing the people who do the hard work of it. The visuals, storywritting, etc. Cmon, he is made look good. Yes RDJ is an amazing actor, but you guys are disrespecting the people who put it all together BTS.

  11. Thank u marvel for a great childhood馃槶 u gave me great movies throughout my childhood my 18 years

  12. cool video and all, but my latest video is funny asf, and worth your time. Watch it, u won鈥檛 regret it.

  13. Big gamble for Downey as well,taking on such an iconic role.
    Happily,he and the character of
    Tony Stark fit together seamlessly.

  14. 0:32鈥 relative successes ??? Spider-Man (2002) was one of the biggest box office hits of all time when it released. Smh

  15. It doesn鈥檛 matter whether it鈥檚 right or wrong. If you emerge victorious at the end, you鈥檙e a hero. If not, you鈥檙e the villain.

  16. I don鈥檛 think it鈥檚 hit people yet that there is no more iron man….. I鈥檓 not crying you are

  17. Bankrupt Marvel… Wtf? These peeps making billion of dollars upon every film they release and have released. What am I missing?

  18. Props up to Marvel how it had evolved all throughout the decade from the comics empire to the cinema. Im looking forward to see how will their company evolve further since i grew up in the generation of comics and prints.

  19. They shot Ironman right and cast it right, it could've had cheesy CGI but they filmed it right

  20. Look at where they are now endgame has 2.38 billion in just 15 days and no2 in top grossing films of all time it already surpassed titanic

  21. Marvel : How many chance we can step out from the bankrupt
    Meisel : I see 14.000.605
    Marvel : How many we can win
    Meisel : 1

  22. Why is every clown on this list saying RDJ saved Marvel? Did ANY OF YOU even remotely pay attention to this video?!? No, David Malsel and Merrill Lynch saved Marvel. If it weren't for Malsel's idea and Merrill Lynch's financial contribution. There would be no MCU. IT CLEARLY SAYS THIS IN THE VIDEO! Then Kevin Feige was hired. And luckily he's a die hard Marvel fan. How did all of you miss this. It was the entire point of this video. To show you all how this truly got started, BEHIND THE SCENES. There wouldn't even be a RDJ casted in the movie if it weren't for these guys. It wad originally going to be Tom Cruise remember. If these guys hadn't stepped in RDJ would not be Ironman. He was considered a liability at the time, because of his prior drug issues. They gave him a second chance, then the rest was history. Damn, I see half the population really IS stupid.

    Thanos was right.

  23. Disney got starwars for 4 billion as well, i guess marvel set the value on future big movie franchise but starwars not as good since TLJ.


  25. Imagine how stupid the second group of CEOs were
    "Oh yeah let's get 1% of the profit from this movie that's a good deal"

  26. I still don't fuck with block buster super hero movies because they're literally all the same and boring as fuck.. BUT GODDAMN THAT'S FUCKING COOL I'm excited to see what the future holds for these the super hero movie industry whether or not I actually will give a shit and go see them tho? … That's another story hahaha 馃槀 鉂わ笍 I'm just interested

  27. I always wondered how Marvel remains profitable selling their paper comic books. They don鈥檛. Movies and toys was a smart business move

  28. So you see, when you put some corporate greedy asshat in charge, the business doesn鈥檛 die.

    When you put someone passionate in charge, the business thrives.

    Marvel made that choice, and now are enjoying the huge profits, well deserved.

  29. Hey Folks,

    I have made a small tribute to the superhero game :

    Hope you like it!

  30. Wow if this didnt happen we wouldnt of had to worry about Disney having to buy everything so we can get the best mcu

  31. Truly a "nut up or shut up" moment! 鈿撅笍鈿撅笍

    (Don't worry, it's from Zombieland.
    I say it all of the time!) 馃檪鉁

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