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TSG Entertainment, Hollywood's biggest investor, is suing Disney over alleged unfair accounting practices. The lawsuit asserts that Disney withheld money from TSG, which has invested over $3 billion in 20th Century Studios films. Avatar: The Way of Water financier also alleges that the House of Mouse company used “Hollywood Accounting playbook” tactics to withhold hundreds of millions. Defendants include Twentieth Century Fox Film Corp and Walt Disney, despite the entity being 20th Century Studios.
The lawsuit also claims Disney favored its platforms, Disney+ and Hulu, over a profitable HBO deal for Fox films. In fact, The Avatar: The Way of Water financier reveals that Fox favored FX cable deals over more lucrative options. TSG invested $3.3 billion in 100+ films, like the new Avatar movie, The Martian, Bohemian Rhapsody, Deadpool, and more. However, lack of income curtailed future high-value projects, affecting potential profits.
During their independent audit, Avatar: The Way of Water financier found they're owed $40 million for three films of Disney and 20th Century Studios. Further review suggests this owed sum to TSG Entertainment could be much larger. Represented by attorney John Berlinski, who previously won a $40 million settlement for Scarlett Johansson against Disney, the lawsuit's outcome may reshape Hollywood's financial dynamics and studio partnerships.
TSG Entertainment, despite enduring losses, holds its position as a major investor. However, the ongoing legal battle against Disney bears the potential to reshape Hollywood's financial landscape. This could impact not only industry practices but also the dynamics between studios and financiers, potentially influencing upcoming film projects.