This case study is about a clique of investors looking to buy further portfolio of feature films. In the case, they are faced with a dilemma of the need to determine how much to bid and how to structure a contract with one or more of the major American film studios. This case study involves estimates of cash flows for all top features films released in the United States in the year 1989. This helps in estimation of the cost of extension of rights to the first film. This case has been designed to familiarize the readers with the real options and methods to assess the value of real options.
by Timothy A. Luehrman, William A. Teichner Source: HBS Premier Case Collection 19 pages. Publication Date: June 12, 1992. Prod. #: 292140-PDF-ENG