A while back we wrote that Penguins of Madagascar was expected to be a nightmare for CEO Jeffrey Katzenberg and Dreamworks. Well, the good thing about a nightmare is that it ends and you can wake up from it. It is possible that “Penguins of Madagascar” will be something worse than a nightmare for the troubled film company that has tried to sell itself off twice in the past year.
Shares of Dreamworks dropped 5.9% as Stifel analyst Benjamin Mogil said he expected the film to lose as much as $49 million as opposed to the $15 million he had initially predicted, according to Deadline Hollywood. Currently Penguins has grossed $59 million domestically, and it is likely to end up a bit higher at $75 million, but is still a huge drop off from estimates of $110 million from Mogil. B. Riley’s Eric Wold was expecting $200 million, cutting it to $130. It will be lucky to reach even half that much.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at email@example.com.
Dreamworks was hoping the film would be rescued by its overseas audience, but at $116 million so far in sales, it is likely to disappoint in Europe, Asia and Latin America as well. Mogil was hoping for $300 million overseas, but has cut his estimates to $250. Wold reduced his outlook from $350 to $200.
Good thing Penguins can swim.