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Thursday, Mar 28, 2024

Stan Lee, With Spider-Man’s Help, Is Back in Business

Stan Lee, With Spider-Man’s Help, Is Back in Business By CARLOS MARTINEZ Staff Reporter Even after losing more than $1 million of his own money on an ill-fated Internet site and missing out on the profits generated by the hit film, “Spiderman,” based on the character he created, Stan Lee is back in business. It was just a little over a year ago that Encino-based Stan Lee Media went belly up amid charges of mismanagement, alleged illegal stock sales and misappropriation of funds by Lee’s partner, Peter F. Paul, who was arrested in Brazil and faces extradition back to the U.S. Lee did receive a six-figure salary from Marvel Enterprises Inc. for his work as executive producer on the film, “Spider-Man,” but does not share in the blockbuster’s royalties. And even as he admits to having trouble pushing movie and television deals for his properties last year due to the Stan Lee Media problems, Lee has seen a resurgence in interest in his characters and stories because of “Spider-Man.” He recently signed deals with Metro-Goldwyn-Mayer Inc., worth about $2 million, and Cheyenne Entertainment Inc. to produce films and television programs. “Spider-Man” had the biggest opening weekend ever for a film with $114 million in ticket sales the weekend of May 3, according to Exhibitor Relations Co. It grossed $285.6 million in its first two and a half weeks of release. Lee created the character in 1962 with artist Steve Ditko, but Spider-Man is the property of Marvel, where Lee was editor and lead writer at the time. “It’s not my character,” he said. “It belongs to Marvel and they get all the money.” Still, Lee said the film’s success has made it easier for him to market other characters that he owns outright. Besides that, his autobiography, “Excelsior! The Amazing Life of Stan Lee,” was released to coincide with that of the film earlier this month. At about the same time most of the deals involving “Spider-Man” were being made in 2000 without him Sony Pictures Entertainment was agreeing to develop his “Hulk” character into a live action movie set for release later this year. “And we’re already in the process of developing three motion pictures for MGM based on my new characters,” said Lee, who would not reveal their identities due to contractual agreements with the studio. Lee is also developing a show for cable’s The National Network titled “Stripperella,” an animated series starring Pamela Anderson, who will do the voice of a crime-fighting stripper. Lee signed the three-movie deal with MGM through his newly created Purveyors of Wonder Entertainment Inc., or POW Entertainment. “These are movies that have been green lit and, if they are successful, they could make the deal worth millions upon millions of dollars, so it’s hard to say how much it’s really worth,” said his attorney, Arthur Lieberman. Lee’s development deals are in stark contrast to the trouble he found himself in last year when Stan Lee Media closed for good amid charges of mismanagement and fraud. Lee himself owned shares in the company that at one time were valued at more than $90 million. “But it’s just paper now,” he quipped. The firm was started in 1999 after Lee left Marvel Comics, then struggling through near-bankruptcy itself. It was dedicated to creating and licensing characters and stories based on Stan Lee-owned properties, along with providing an outlet for new cartoons on its Web site. Stan Lee Media completed a successful initial public offering in February 2000. The company spent millions rounding up talented writers and artists, but reported little in tangible revenue. In 2000, the company posted a $23.9 million loss on $1.3 million in revenue. The company’s stock went from a February 2000 high of $28 a share to 13 cents a share when Nasdaq halted the stock’s trading in November 2000, pending an investigation of alleged stock manipulation by Paul. Stan Lee Media ceased operations the following month. Lee, cleared of any wrongdoing, blames himself for not questioning his partner’s business practices earlier. “I was totally trusting in the past, I left the business decisions to him and it was a mistake,” Lee said. “I’m more on top of things now.” Paul, former Stan Lee Media COO Stephen M. Gordon and Gordon’s brother, former Merrill Lynch & Co. financial consultant Jonathan Gordon, were indicted last October on 13 counts each of defrauding the Internet company, US Bank and Merrill Lynch of $3 million with a check writing scheme. Paul and Gordon also face separate charges in New York involving stock manipulation. All the cases are still pending. Lee said he’s still counting his losses as a result of the fiasco. His reputation and efforts to market his characters suffered too. “You can’t do business when you have something like that going on,” he said, “and it hurt me personally.” Lieberman said, “He got connected by forged signatures to a lot of these things. We were able to show that these were indeed forgeries, but there are still other cases we’re working on.” John Barnes, a marketing and licensing consultant in New York, said he’s not surprised by the revival of Lee’s career. “He’s a known commodity with a lot of success behind him,” he said. “Something like a failed Internet venture wasn’t going to stop him when you have ‘Spider-Man’ mopping up at the box-office.” Likewise, Melissa Read, an agent with the Jim Preminger Talent Agency in Los Angeles, said the “Spider-Man” success is all Lee needs in Hollywood. “If you’re successful with something, they’re going to forget that you ever messed up,” she said.

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