Universal, Fox Withdraw Financing for Microsoft's "Halo" Movie

Authored by Mark Hefflinger on October 23, 2006 - 1:25pm.

Los Angeles - Hollywood movie studios Universal and Fox have dropped their financial support of a movie version of Microsoft's "Halo" Xbox video game directed by Peter Jackson, Variety reported. The filmmakers told Variety the deal collapsed after Universal and Fox, which had agreed to co-finance the picture, negotiated unsuccessfully to reduce the share of profits that Microsoft and the filmmakers would receive from the movie.

Under the original deal, Microsoft was due to receive a $5 million upfront payment and 10% of gross profits. There were also rumors the film was expected to exceed its original $135 million budget and end up costing closer to $200 million to make.

"We are disappointed that Universal and Fox wanted to significantly renegotiate the financial points of the deal," Microsoft said in a statement. Ken Kamins, who represents Peter Jackson, told Variety that Microsoft is already in talks with other potential distribution partners, adding that there will be no stoppage on the film's production.

Related Links:
http://www.variety.com/VR1117952317.html
http://www.bungie.net/News/TopStory.aspx?link=filmateleven