Private Equity's Hollywood Flops

What's worse? Sitting through Will Farrell's brain-dead comedy Land of the Lost or a board meeting of a Hollywood studio if you happen to be one of its private equity investors? No contest—it's the board meeting. Just ask the folks at Providence Equity Partners, who plunked down $525 million as part of a group that bought MGM for $5 billion from billionaire Kirk Kerkorian in 2005. Or the people at Goldman Sachs (GS), who the next year put together a private equity group (and invested Goldman money) to back the Weinstein Co., started by Miramax founders Harvey and Bob Weinstein.

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