Warner and ADMC partnership moving forward

The chief executive of Abu Dhabi Media Company has confirmed the deal with Warner Bros is intact and moving forward.

Since the partnership between ADMC and Warner Bros was announced in Sept 2007, the partners have worked together on Shorts, a Robert Rodriguez film scheduled for release this summer, and four video gaShow more

The 18-month-old deal between Warner Bros and Abu Dhabi Media Company to produce films and video games is intact and moving forward, according to the local company's chief. Edward Borgerding, the chief executive of ADMC, which owns The National, discounted recent reports that parts of the deal had stalled and the two parties have stopped discussing movie projects. "The deal is going through," Mr Borgerding said. "We are producing a film, Shorts, with them, and we talk to Warner Bros about films all the time. They offer us movies all the time and the video deal is going through." Since the partnership was announced in September 2007, the partners have worked together on Shorts, due for release this summer, and four video games, one based on the Watchmen movie. The announcement included plans for a film fund that ADMC and Warner Bros would contribute to equally for production of broad-appeal movies, with Warner Bros keeping global distribution rights. It also included plans for Warner Bros and Aldar, Abu Dhabi's largest developer, to build a theme park, hotel and cinemas. Mr Borgerding said that while the memorandum of understanding signed in 2007 still held, in any deal of this complexity there were details that had to be pinned down when finalising the full contracts. "It's normal to negotiate deals when you sign a term sheet," he said, referring to the document outlining the terms of a business agreement. "These are very complicated deals. Everything needs to be discussed, but the essence of the deal is still in place and we are acting on it." Mr Borgerding said that ADMC and Warner Bros were both fulfilling their obligations according to the agreement. In a statement released to Business Week magazine this week, Warner Bros said: "In light of the current economic climate, we are working with our partners in Abu Dhabi to ensure each company's business objectives are mutually aligned." Mr Borgerding said contrary to recent speculation in the press, the downturn has had no effect on ADMC's film fund, Imagenation, which took over the management of the Warner Bros partnership when it was formed last autumn. "Our funding is in the bank," he said. On the property development side of the deal, construction has started on some projects, such as the Warner Bros-branded multiplex cinemas in the Central Market Development, Ruwais and Yas Island, according to a spokesman from Aldar, which is building the projects. A fourth multiplex in Al Ain is being redesigned because of new guidelines set by the city's planning authorities. However, others, such as the Warner Bros theme park and hotel planned for Yas Island, may be delayed. According to the original deal, Aldar was expected to start building the projects this year, but an Aldar spokesman said the master plan for the project was still being finalised, and the company's immediate focus was the Formula One development. [e-mail]