Arundel Partnels: The Sequel Project – Why do the principals of Arundel Partners think they can make money buying movie
sequel rights? Why do the partners want to buy a portfolio of rights in advance rather
than negotiating film-by-film to buy them?

Please answer the following questions:

1. Why do the principals of Arundel Partners think they can make money buying movie
sequel rights? Why do the partners want to buy a portfolio of rights in advance rather
than negotiating film-by-film to buy them?
2. Estimate the per-film value of a portfolio of sequel rights such as Arundel proposes to
buy. [There are several ways to approach this problem, all of which require some part of
the dataset in Exhibits 6-9. You may find it helpful to consult the Appendix, which
explains how these figures were prepared.]
3. What are the primary advantages and disadvantages of the approach you took to valuing
the rights? What further assistance or data would you require to refine your estimate of
the rights’ value?
4. What problems or disagreements would you expect Arundel and a major studio to
encounter in the course of a relationship like that described in the case? What contractual
terms and provisions should Arundel insist on?
Please fully utilize the information given in the case to support your argument. You should not
need to use any outside information. Please state and justify all major assumptions used in your
estimation.

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