- 6 - B. Technicolor’s Customer Relationships In 1986, Paramount Pictures Corp. (Paramount), a noncontractual customer of Technicolor since 1923, entered into its first contract with Technicolor. Under this contract, Technicolor received one-half of Paramount’s film processing business. In 1987, Technicolor became Paramount’s exclusive film processor. In 1992, after the expiration of its contract with Technicolor, Paramount entered into a contract with Deluxe. After Paramount signed with Deluxe, it continued to do business with Technicolor under an exception to an exclusivity provision (i.e., a contractual provision in which a customer agrees to purchase a particular product or service from only one company) in Paramount’s contract with Deluxe. Metro-Goldwyn-Mayer/United Artists (MGM/UA) became a Technicolor customer in 1924. In 1987, MGM/UA split its film processing work between Technicolor and Deluxe and became a significant noncontractual customer of Technicolor. At the time of the acquisition, Technicolor did not have a film processing contract with MGM/UA. In addition, the preacquisition review did not project 1989 revenues relating to MGM/UA. In 1991, MGM/UA entered into a contract with Deluxe, but continued to do business with Technicolor. On October 21, 1988, Management Co. Entertainment Group, Inc. (MCEG), a newly formed independent film production company,Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011