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How Hollywood Studios Manage to Officially Lose Money on Movies That Make a Billion Dollars

How Hollywood Studios Manage to Officially Lose Money on Movies That Make a Billion Dollars

Well, it’s all thanks to a wonderful concept known colloquially as “Hollywood Accounting”, or more accurately “How to Lose Friends and Screw People”. Despite this relatively low figure, unfortunately for executives at Paramount studios, it never turned a profit after grossing nearly $700 million at the box office. The movie went on to gross, adjusted for inflation today, about half a billion dollars (about 30 times its original production budget). We can only hope that one day someone makes a movie about the whole thing that somehow fails to turn a profit despite grossing a billion dollars. Clearly the billionaries buying and running these teams have no idea how to manage money, paying billions for franchises that just hemorrhage losses each year.

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