Could 'Tomorrowland' Be The Biggest Disney Movie Failure Of All Time?
Roughly three weeks into its launch, Walt Disney Co (NYSE: DIS)'s "Tomorrowland" is on track to be the worst-performing movie in the company's history.
The movie has grossed just $171 million in box offices worldwide, compared to a cost of $330 million to produce and market the film. By the time it finishes in box offices, the Hollywood Reporter estimated that it will lose $120 to $140 million.
Not The Only Flop
That comes slightly shy of Disney's "The Lone Ranger," which caused a $190 million write-down two years ago.
Fortunately for Disney, however, the potential failure of "Tomorrowland" may be overshadowed by optimism for how "Star Wars: Episode VII" will perform in December. Some experts have estimated that the latest Star Wars movie will see box office receipts of as much as $2 billion.
"Tomorrowland" also marks the second consecutive disappointment for actor George Clooney. His last movie, "The Monuments Men," also saw difficulty in the box office – earning just $155 million. Yet, that movie only cost $70 million to produce, giving it a net profit.
Disney stock has performed quite well year-to-date, gaining nearly 17 percent compared to gains of 2.25 percent in the S&P 500. Disney stock has consistently outperformed on a longer time horizon as well, gaining 226 percent in a five-year period compared with gains of 98 percent in the broad index.
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