Neverland Ranch Owner: Movie Business Not a 'Club'
The failings of brick-and-mortar distribution models in film and entertainment, as seen in the shortly-anticipated bankrupty of film retailer Blockbuster, is opening the door for new dealmakers in Hollywood, Colony Capital chairman and founder Tom Barrack told CNBC Wednesday.
"In the past twenty years, you couldn't get into the entertainment business. It was a club...today there are no market barriers," Barrack said.
The real estate tycoon, best known as the owner of Atlantis Resorts and late actor Michael Jackson's Neverland Ranch, recently finalized a $660 million deal with Disney to purchase Miramax Films.
The deal gives Barrack's Filmyard Holdings the rights to 700 film titles, including cult favorites Pulp Fiction and Chicago.
"We're always looking for inefficient businesses," Barrack said. "The first thing that is in front of us is Miramax and trying to return that brand to what it was."
The dealmaker said he maintains a deep affection for the real estate business, though he believes the boom days of the last decade are long gone.
"Real estate will always be a good busines, but it's probably going to be a single-digit business for the forseeable future," Barrack said.