Stunt Filled Jackass 3D Blows Out Expectations In Opening Weekend
October 18, 2010 11:37 AM
In a recent report from Wunderlich Securities, Box-Office ticket sales fell 5% to $121 million. MTV's Jackass 3D took home the top spot with $50mm, which doubled expectations as it had a reported $20mm production cost.
This should be the largest October film opening ever, and is already near the full-run grosses for the preceding Jackass entries in 2002 and 2006. It shows the promotional power of MTV Networks, whose parent company is Viacom (NYSE: VIA), home of the original Jackass television series. The result was achieved despite an R rating with 60% of the audience male and 67% under 25.
The Geriatric spy satire Red, acquired by Summit Entertainment after little interest from other studios, also grossed a stronger-than-anticipated $22.5mm at #2.
The Social Network from Sony Pictures and family-oriented classic Disney release Secretariat showed modest 29% and 25% declines in the #3 and #4 spots at $11.0mm and 9.5mm, respectively.
Wunderlich remains positive on the potential Lionsgate (NYSE: LGF) merger with MGM (NYSE: MGM), with a bid announced last Tuesday. The $1.9bn nominal price for the acquisition appears attractive in the context of $300mm in admittedly depleted operating cash flow from the MGM library, complemented by the ongoing but in production limbo Bond franchise and a 50/50 venture with Warner Bros. for the Hobbit. It estimates that 2012 private market value for Lionsgate could approach $15 a share on an "as is" basis.
LGF is trading slightly lower at $7.56
MGM is trading 2% higher at $11.30
VIA is trading lower at $41.49
