-217-
F. Other Considerations
1. SMP’s Other Film-Related Activities
After the CDR transaction, SMP acquired the “City Lights”
library, the “Wisdom” library, the “Moving Picture” library, the
“Five Stones” library, and the “Vista Street” library.
Petitioner suggests these acquisitions should have some bearing
upon our evaluation of the CDR transaction. We disagree. There
is no evidence to suggest that these acquisitions were
contemplated at the time of the CDR transaction; these
acquisitions are entirely unrelated to any supposed film venture
with the banks. In any event, the acquisitions are relatively
insignificant when compared to the enormous tax losses that the
Ackerman group claims to have reaped from the CDR transaction and
the $14,595,652 fee that Imperial paid SMP for its share of tax
losses on the Corona transaction.162
Petitioner also points to a number of discussions that he
had in 1997, 1998, and 1999, which related to certain film-
related transactions and activities.163 According to Mr. Lerner,
162 The film libraries consisted of 85 film titles, for which
the Ackerman group paid a total of $1.1 million.
163 The discussions involved: (1) A possible distribution
deal between SMHC and Orion in 1997; (2) a possible sale by the
Jones Entertainment Group in 1997 of the rights to 5 film titles;
(3) negotiations in 1997 with CitiCorp Ventures, which was
interested in acquiring a film library for use in its chain of
theaters; (4) a possible distribution relationship with UnaPix
Entertainment in 1997; (5) negotiations with Comcast Corp.,
(continued...)
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