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The Cannon Group, Inc.
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The Cannon Group, Inc. was an American group of companies, including Cannon Films, which produced films from 1967 to 1994.[2] The extensive group also owned, amongst others, a large international cinema chain and a video film company that invested heavily in the video market, buying the international video rights to several classic film libraries. The Cannon catalogue encompasses a wide range of different genres. On one hand, they are known for their highly successful 1980s action B movies, such as Missing in Action (1984), American Ninja (1985), and Bloodsport (1988). But they also produced the Oscar-nominated films Joe (1970), Runaway Train (1985) and Street Smart (1987).

Key Information

1967–1979: Friedland/Dewey era

[edit]

Cannon Films was incorporated on October 23, 1967. It was formed by Dennis Friedland and Chris Dewey while they were in their early 20s. They had immediate success producing English-language versions of Swedish soft porn films directed by Joseph W. Sarno: Inga (1968), aka Jag––en oskuld and To Ingrid, My Love, Lisa (1968), aka Kvinnolek. By 1970, they had produced films on a larger production scale than a lot of major distributors, such as Joe, starring Peter Boyle,[3] and The Yum-Yum Girls.

They managed this by tightly limiting their budgets to $300,000 per picture—or less, in some cases. The success of Joe brought more attention to the company.[3] As the 1970s moved on, a string of unsuccessful films seriously drained Cannon's capital. This, along with changes to film-production tax laws, led to a drop in Cannon's stock price.

1979–1987: Golan-Globus era

[edit]

By 1979, Cannon had hit serious financial difficulties, and Friedland and Dewey sold Cannon to Israeli cousins Menahem Golan and Yoram Globus for $500,000.[4] The two cousins forged a business model of buying bottom-barrel scripts and putting them into production. They produced such films in a variety of genres, although their biggest successes were with action films. They tapped into a ravenous market for B movies in the 1980s.[5] After buying the rights to the 1974 film Death Wish, Cannon produced three sequels to it in the 1980s, all starring Charles Bronson. Despite receiving negative reviews from the critics, these films were financially successful, especially Death Wish II (1982), which earned over $40 million on an $8 million budget.

Other major hits for Cannon were a series of action movies starring Chuck Norris, including Missing in Action (1984),[6] Invasion U.S.A. (1985) and The Delta Force (1986). Missing in Action was criticized heavily as being a preemptive cash-in on the Rambo franchise.[7][8] James Cameron's story treatment for Rambo: First Blood Part II was floating around Hollywood in 1983, which Golan and Globus reviewed and were "inspired" by.[7][8] The writers of MIA even gave Cameron credit saying their film was inspired by his script treatment.[9]

The Cannon Group ignited a worldwide ninja craze with "The Ninja Trilogy", a film series which consisted of Enter the Ninja (1981), Revenge of the Ninja (1983), and Ninja III: The Domination (1984), all starring Sho Kosugi, as well as American Ninja (1985) and its sequel American Ninja 2: The Confrontation (1987). Other action/adventure films they produced included the 3-D Treasure of the Four Crowns, King Solomon's Mines, and the vigilante thriller sequel Exterminator 2.

The Cannon Group's biggest financial success was with the 1986 action film Cobra, which starred Sylvester Stallone; not a low-budget film, it earned $160 million on a $25 million budget.

Cannon produced musical and comedy films such as Breakin', Breakin’ 2: Electric Boogaloo, The Last American Virgin, and the U.S. release of The Apple (directed by Golan); erotic period drama pictures such as Lady Chatterley's Lover (1981), Bolero, and Mata Hari (1985); science fiction and fantasy films such as Hercules, Lifeforce, and The Barbarians; and serious pictures such as John Cassavetes' Love Streams, Franco Zeffirelli's Otello (a film version of the Verdi opera), Norman Mailer's Tough Guys Don't Dance, and Andrei Konchalovsky's Runaway Train and Shy People.

During these years, Cannon prominently advertised at the Cannes Film Festival each year. Substantial pre-sales of the next years' films (often involving ancillary rights, including international distribution, home video, and television rights to Cannon's productions) were made based on the strong salesmanship skills of Globus. The deposits made from these sales financed production of the first film in the production line-up, which—when completed and delivered to theatre owners around the world—generated enough money to make the next film in the line-up. Slavenburg's Bank [nl] in the Netherlands (which had provided Cannon's start-up capital in 1979) and their principal loan officer, Frans Afman, provided bridge financing until the pre-sales amounts were collected; this role was inherited by Credit Lyonnais after their purchase of Slavenburg's in 1983.[10]

In 1982, The Cannon Group, Inc. entered into a relationship with MGM/UA Entertainment Co. with the latter company serving as Cannon's distributor for North American theatrical and video releases; this would not be the last time Cannon dealt with MGM.[11][12] In 1984, Cannon expanded further into Europe, signing with UGC for French distribution, and acquiring Kenneth Rive's Gala Films, which was absorbed into Cannon Group's U.K. distribution arm.[13][14] On June 25, 1985, Cannon bought the rights to produce future films based on the comic book character Superman from the Salkinds, and struck a distribution assignment with Warner Bros. (owners of the Superman property) for a 1987 release.[15] Cannon also further expanded their French assets, with the aim of becoming the largest film distributor in France.[16]

By 1986, output reached an apex with 43 films in one year. Golan remained chairman of the board, while Globus served as president. That year, Cannon attempted to produce film adaptations of the stage plays Zorba and American Buffalo, but these films never materialized.[17] Another film project that ultimately never materialized was a live-action film based on Barbie, with a planned plotline concerning the eponymous doll showing her owner that her dreams could come true. Warner Bros. would eventually release a live-action film based on the property in 2023.[18] Other areas of interest included plans for television adaptation of Cannon properties,[19] and following up their adaptation of Rumpelstiltskin with a total of 12 fairy tale films as the Cannon Movie Tales series; Cannon wound up releasing only a few of the fairy tales.[20]

Film critic Roger Ebert said of Golan-Globus in 1987, "no other production organization in the world today—certainly not any of the seven Hollywood 'majors'—has taken more chances with serious, marginal films than Cannon."[21] That year, Cannon gained its greatest artistic success: its 1986 Dutch production The Assault won the 1987 Academy Award for Best Foreign Language Film and a Golden Globe Award for Best Foreign Language Film. Meanwhile, Otello, based on the opera of the same name, also received a Golden Globe nomination that year.

Golan and Cannon Films tended to over-promote films that did not live up to expectations. For instance, Lifeforce (1985) was to be "the cinematic sci-fi event of the '80s" and Masters of the Universe (1987) was dubbed "the Star Wars of the '80s." Diversifying from film production, Cannon had begun purchasing film distributors and movie theaters. The purchases ranged from European companies (Thorn EMI Screen Entertainment, Tuschinski Theatres, a 49-screen theater chain in the Netherlands, and the 53-screen Cannon Cinema Italia) to the sixth-largest chain in the United States, the 425-screen "marginally profitable" Commonwealth Theaters.

In addition, Cannon also owned the film rights to Spider-Man, and planned to produce a Spider-Man film in the mid-1980s.[22] Golan and Globus agreed to pay Marvel Comics $225,000 over the five-year option period, plus a percentage of the film's revenues.[22] The rights would revert to Marvel if a film was not made by April 1990.[23] Marvel and Sony would eventually complete and release a Spider-Man film in 2002 directed by Sam Raimi after the rights had been re-secured, following a lengthy and messy legal battle between Marvel, Sony and several other parties over the film rights.[24][25][26]

Cannon's films proved to be much more popular in the United Kingdom than in its native United States, which is why Cannon acquired several British cinema chains during the 1980s, and founded the mail-order video distribution service Videolog as a joint venture with Columbia House Europe, Ltd. in the mid-1980s. From the mid-1980s until the mid-1990s, Cannon Cinemas were a familiar sight in the United Kingdom until Richard Branson's Virgin Group bought the remaining sites and rebranded them as Virgin Cinemas in 1995. Cannon purchased the assets of Thorn EMI Screen Entertainment from businessman Alan Bond in April 1986 for £175 million;[27] the renamed Cannon Screen Entertainment and archrival The Rank Organization jointly signed a $10 million agreement with the BBC that August for the latter to broadcast both companies' films.[28]

1987–1991: Parretti era

[edit]

By 1988, a cooling in the film market and a series of box office disappointments—including the multimillion-dollar production of Superman IV: The Quest for Peace (1987), whose original $36-million budget was slashed to $17 million—had once again put Cannon in financial woes. Concerns about Cannon's financial future had been expressed as early as 1986; one unidentified film executive called the company a "house of cards", with Golan and Globus – between their splashy wheeling and dealing, reports of "penny-pinching" by the duo in terms of business expenses, and numerous lawsuits incurred by the company (including one filed by David Begelman over Cannon's buyout of the Thorn EMI assets; Thorn EMI had been a financing partner of Begelman's Gladden Entertainment) – attaining an unwelcome reputation in the Hollywood community.[29] Dustin Hoffman also filed suit against Cannon, after the company purportedly breached a contract signed with the actor by taking out full-page advertisements to promote Hoffman's involvement with Cannon.[30]

The company signed a $75 million agreement with Warner Bros. to handle part of their assets;[31] however, the financial loss was staggering. Following the purchase of the Thorn EMI assets, Cannon was severely stretched, and faced bankruptcy; in May 1987, Cannon sold its 2,000-title Thorn-EMI library for $85 million to Weintraub Entertainment Group.[32][33] Shortly afterwards, Cannon dropped out of the HBO/Cannon Video joint venture with HBO due to Cannon's ongoing financial problems.[34][35]

The U.S. Securities and Exchange Commission began an investigation into Cannon's financial reports, suspecting that Cannon had fraudulently misstated them. On the verge of failure, Cannon Films was taken over by Pathé Communications, a holding company controlled by Italian financier Giancarlo Parretti. Financed by the French bank Crédit Lyonnais, already involved with Cannon for years, Pathé Communications' takeover of Cannon immediately began a corporate restructuring and refinancing of $250 million to pay off Cannon's debt. By 1989, Golan, citing differences with both Parretti and Globus, resigned from his position and left Cannon to start 21st Century Film Corporation, while Globus remained with Pathé.[36]

One of the final films produced by Golan and Globus that received a wide release under the Cannon Films banner was the post-apocalyptic action film Cyborg. This film was conceived to use both the sets and costumes built for a planned but unmade sequel to Masters of the Universe as well as the ill-fated live-action version of Spider-Man. Both projects were planned to shoot simultaneously under the direction of Albert Pyun. Not to let that pre-production work go to waste, Pyun wrote Cyborg, with Chuck Norris in mind, suggesting it to Cannon Films. Jean-Claude Van Damme was cast in the lead role.

Following Golan's departure from Cannon, he became the head of 21st Century Film Corporation, an independent company. The Cannon Group was renamed and restructured by Parretti with Globus being made co-president of Pathé Communications and chairman of Cannon International and Alan Ladd Jr. was brought in as chairman of Pathé Entertainment.[37] In 1989, Pathé greenlit three films, The Russia House with Sean Connery and Michelle Pfeiffer, Quigley Down Under starring Tom Selleck and Fires Within with Jimmy Smits. They also announced Shattered directed by Wolfgang Petersen, Not Without My Daughter with Sally Field, Company Business starring Gene Hackman and Mikhail Baryshnikov as well as Ridley Scott's Thelma & Louise.[38] They signed a domestic distribution deal with Warner Bros. for its theatrical product.[39]

Soon after announcing a new slate of films and the distribution deal with Warner Bros., Parretti made a $1.2 billion bid for Metro-Goldwyn-Mayer, backed by Crédit Lyonnais. The bid was accepted and Parretti merged Pathé Communications and MGM to create MGM-Pathé Communications.[40] With the merger, the majority of the former Cannon Group library became part of the MGM library (certain rights for other media and select films during the Thorn EMI merger now lie with other entities). As MGM-Pathé had a distribution deal with Warner Bros. (and who had part financed Parretti's takeover bid), Parretti axed the MGM/UA Home Video department as one of his first acts in charge, resulting in the loss of eighty jobs.[41]

Crédit Lyonnais foreclosed on Parretti in July 1991 after he defaulted on loan payments[42] and sued for the removal of Paretti, his wife Maria Cecconi, his daughter Valentina Parretti, Yoram Globus, Florio Fiorini, Danny Dimbort, Antonio Pares-Neira and Lewis Horowitz from the board of directors.[43]

Parretti -- pushed out of management control of MGM-Pathé and the board -- proceeded to countersue Crédit Lyonnais, claiming they destroyed his ability to make money at MGM-Pathé, in an attempt to wrestle control back.[44] Parretti was later convicted of perjury and evidence tampering in a Delaware court for statements he made in a 1991 civil case, brought by Credit Lyonnais to validate their removal of Parretti, to the effect that a document he claimed allowed him to retain control of MGM was authentic;[45][46] he fled the country for Italy before he could be sentenced or extradited to France, where he was wanted on criminal charges related to his use of MGM's French assets.[46][47]

In 1997, the California Superior Court in Los Angeles entered a final judgement in a separate civil suit against Parretti, ordering him to pay $1.48 billion to Credit Lyonnais.[46] After Federal prosecutors unsealed an indictment against Parretti and Florio Fiorini accusing them of fraud in 1999, Italian authorities arrested both men and held them for extradition to the United States.[48] Parretti was released by the court of appeal in Perugia shortly thereafter, ordered to remain in his home town of Orvieto and report to the police three times a week, even though authorities in Rome had requested he be held pending a decision on the extradition.[citation needed]

1989–1997: Cannon Pictures, Inc. era

[edit]

Even as the original Cannon became part of Pathé and subsequently MGM, Parretti opted to reform Cannon in 1989 as his low-budget filmmaking arm (now known as Cannon Pictures, Inc.), led by veteran Italian film producer Ovidio G. Assonitis.[49]

The new Cannon announced their presence at that year's MIFED international film market in Milan, with an impressive line-up of multiple new productions and releases, including some with Cannon standbys like Chuck Norris (Fifty/Fifty, Delta Force 2: The Colombian Connection and TOP KICK) and Michael Dudikoff (WINGS, Midnight Ride and American Ninja 4), JAM to be directed by Joel Silberg, Dusted (later released as Death Warrant with Jean-Claude Van Damme), Keaton's Cop with Lee Majors, an untitled film starring Charles Bronson, Crack House with Richard Roundtree and Jim Brown, Rockula, The Rose Garden with Maximilian Schell and Liv Ullmann, The Secret of the Ice Cave with Michael Moriarty and Sally Kellerman and A Man Called Sarge.[50] The new slate of pictures was expected to cost $50 million.[51] The company managed to post a small operating profit before the end of the year.[52] JAM was rebranded as Lambada to cash in on the craze and was released in 1990.[53]

However, the troubles of parent Pathé soon began to affect the re-established Cannon. After the MGM-Pathé merger, Parretti agreed to sell Pathé's 60% majority stake in Cannon Pictures to Assonitis and a group of investors for $14 million. The sale would include the office building at 8200 Wiltshire Blvd, where Cannon Pictures was based.[54][55] Parretti tried to push the deal through quickly to release some capital for MGM-Pathé;[56] however, the deal fell through less than two months later due to financing problems, and MGM-Pathé was granted an easement on financial conditions that were placed upon it by its lenders as part of the MGM buyout.[57]

At the same board meeting, Assonitis and Cannon Pictures vice-chairman William J. Immerman were fired and replaced by Danny Dimbort. Cannon's marketing and casting operations were shut down by Pathé.[58][59] All of Cannon Pictures' marketing was placed under Pathé's existing operations.[60] Former Cannon Group production head Christopher Pearce was named as Assonitis' replacement and in November 1990, he bought Pathé's stake in Cannon Pictures for $14 million with a deal which allowed Pathé to distribute Lambada, Midnight Ride and American Ninja 4.[61]

Under Pearce, Cannon Pictures announced it would keep contracts with players Charles Bronson, Chuck Norris and Michael Dudikoff signed under Golan's management and revealed a slate of films for 1991, Fifty/Fifty (now starring Peter Weller and Robert Hays), No Place to Hide with Kris Kristofferson and Drew Barrymore, The Hitman (with Norris), as well as The Human Shield and Rescue Me (both with Dudikoff).[62] Richard Inouye joined the company in February 1991 as vice-president and CFO.[63] American Ninja V and the unmade Ants of God were added to the slate at the AFM in 1991 and Warner Home Video signed an agreement to distribute Cannon Pictures' output in North America, UK, Japan, Italy and Australia for ten years.[64]

Cannon Pictures greatly expanded its slate in time for the Cannes Film Festival in 1991 with a total of 18 films, in addition to those already announced, American Kickboxer 1, Black Cat Run with Dudikoff, The Borrower, Deep End and Dream Lover from Boaz Davidson, Delta Force 3: The Killing Game, Ninja: The American Samurai, Solemn Oath and Terminal Bliss had all been added to Cannon's production slate.[65]

When Crédit Lyonnais foreclosed on Parretti in July 1991, the sale of Cannon Pictures was questioned by the bank because Pearce was a board member of MGM-Pathé at the time of the sale and his disclosure of interest had not been documented. Crédit Lyonnais' legal filings against Parretti also named Dimbort, a member of the board of both companies, for receiving $140,000 "for services rendered, although Mr Dimbort did not perform any services to justify payments".[43] Globus was eventually dismissed from the Crédit Lyonnais suits and set up a foreign sales company, Melrose Entertainment, which handled much of Cannon Pictures' sales, alongside that of Global Pictures, another company run by Pearce.[66] In the wake of the Crédit Lyonnais foreclosure on MGM-Pathé, Pearce stepped down as president of Global Pictures, being replaced by Avi Lerner.[67]

In early 1992, there was a middle-management reshuffle at Cannon Pictures with an aim to maximize revenue from Cannon's releases. The Hitman proved to be an early success for the new team.[68] That March, Cannon sued Vision International and its chairman Mark Damon for $15 million over Chuck Norris' involvement in the film, Sidekicks. Cannon Pictures had retained Norris under an "exclusive services" contract that was made in the 1980s by Golan. Cannon Pictures loaned Norris to the makers of Sidekicks for a cameo role under the agreement that he would not appear in more than 30% of the movie; Cannon subsequently objected to Norris receiving "above the title billing" for the film.[69]

At the Cannes Film Festival in 1992, Pearce and Yoram Globus announced they were merging Globus' privately held Melrose Entertainment, Pearce's privately owned Global Pictures and the publicly traded Cannon Pictures into one single entity called the Cannon Entertainment Group. The merger was announced alongside a slate of pictures including Chicago Loop with James Spader, Cold to the Touch with Norris, Teen Angel from Boaz Davidson, Ivory to be directed by Aaron Norris, Delta Force IV: The Deadly Dozen directed by Brian Hutton and White Sun with Dudikoff,[70] as well as a new TV show called Sam Bolt: Texas Ranger, which would later become Walker, Texas Ranger.[71]

Shortly afterwards, they announced that Joe Lara had been signed to an exclusive 10-picture deal with the new company. Lara was then in production on American Cyborg: Steel Warrior which would not be included in the overall deal; however, no films were ultimately made from this deal.[72] By mid-1992, the merger was cancelled after the backers were unable to come to an arrangement with Crédit Lyonnais.[73] Cannon continued with development of Walker, Texas Ranger after CBS picked the series up for 13 episodes.[74] Cash flow problems began to have a serious impact on the company. In October 1992, James Spader sued Cannon Pictures over his $1 million fee for his Chicago Loop pay-or-play deal;[75] and a suit from Michael Dudikoff followed in December, stating he had not been paid from the four films he had made for Cannon.[76]

Cannon Pictures posted a net profit of $1.3 million for the nine months ending September 1992 and secured a new $15 million line of credit from the ING Bank in Amsterdam after Crédit Lyonnais refused to lend more until their loans were fully repaid (said loans weren't due for another four years).[77]

In February 1993, Cannon ran out of money to continue production of Walker, Texas Ranger, due to the indictments of funding partner Banca Nazionale del Lavoro, then embroiled in a scandal over unauthorized loans to Iraq, and producers were desperately trying to raise more money to complete the miniseries.[78] CBS Productions later stepped in with additional funds to complete the production.[79] In August 1993, Cannon reported a net profit of $1 million for its second quarter, double the same period the previous year, due to the success of Walker, Texas Ranger.[80] Cannon Pictures was sued for $14 million in December 1993 by Pictor Insurance Co. and the Peter Miller Corp. for breach of contract over Cannon pulling out of a financing agreement with the two companies.[81]

With this additional pressure, Pearce began exploring selling his stock in Cannon Pictures, but this resulted in another lawsuit being filed against the company and two investment bankers, Robert Blake and Runa Alam, by the Independent Artists Picture Corp. The lawsuit claimed interference and breach of contract in connection with IAPC's plans to buy Cannon Pictures stock in a takeover bid, which would have seen Blake purchase Pearce's stock and Blake and Alam taking control of the day-to-day operations of the company.[82] During this time, Pearce was also exploring a sale to Panda Pictures, but this deal collapsed in yet another lawsuit with Panda claiming $20 million in damages from Cannon Pictures after Pearce reportedly lied about the company's financial condition.[83]

In 1994, Cannon Pictures released its last film, Hellbound, in select theatres in Los Angeles. Shortly afterwards, Pearce sold controlling interest in Cannon Pictures to VMI Acquisitions Inc.[84] The new owners settled some debts at the company, but shortly after the takeover, a group of creditors, including Charles Bronson and Everyvision Inc. sued Cannon Pictures to force it into bankruptcy.[85][86] The creditors succeeded in pushing the company into Chapter 11 bankruptcy.[87] Soon afterwards, it was discovered Christopher Pearce was selling disputed Cannon titles, including Twin Sitters, Delta Force 3, American Samurai, Street Knight, Tobe Hooper's Night Terrors and American Cyborg: Steel Warrior at the Tokyo Film Festival. A judge blocked all sales made at Tokyo and blocked any further sales that were due to take place at MIFED 1994.[88] To prevent any fraudulent deals at MIFED, a warning appeared in Screen International and other publications stating all business must be done with the court appointed trustee and not with Pearce.[89]

The United States bankruptcy court set a deadline of January 11, 1995 for creditors of Cannon Pictures to submit their claim and evidence of debt.[90] Cannon Pictures, its library of 135 films, as well as 112 films from the company's previous incarnation, 21st Century Film Distribution, officially went up for sale on August 14, 1997[91] with the auction taking place on September 15.[92] The property was sold to Imperial Entertainment.[93]

In February 1998, a judge ruled that Ovidio G. Assonitis had been wrongfully terminated from the company by Parretti and Pathé. The judge awarded Assonitis $2.9 million in damages, but by this time, Pathé was bankrupt and had been foreclosed on by Credit Lyonnais.[94]

2001–2002: New Cannon, Inc. era

[edit]

Despite the protracted death of company in its original and reincarnated forms, Golan returned to the filmmaking business in 2001 with New Cannon, Inc. Golan hired Evgeny Afineevsky to act as the company's president. Afineevsky would be based in Los Angeles, while Golan would be based in Tel Aviv.[95] Crime and Punishment, which was originally shot in 1993 under Golan's 21st Century Film Corporation but was not released before 21st Century's bankruptcy, was their first offering alongside a slate of new films including Death Game, a remake of Fritz Lang's M, Kumite (later made as Final Combat but never released) and Open Heart (released in 2002 as Return from India).[95]

By the 2002 Cannes Film Festival, New Cannon had completed Death Game and Return from India and announced a new project, Beauty and the Beast to be directed by Pharaoh Phillips, alongside sales for previously released films Train to Hell and In Search of A Woman.[96] The company was taken over by Vision Films later that year; Afineevsky went on to form New Generation Films to produce Oy Vey! My Son Is Gay!! from a script by Golan.[97] He went on to make documentaries, Cries from Syria and Winter on Fire: Ukraine's Fight for Freedom, which was nominated for an Academy Award for Best Documentary Feature and the Primetime Emmy Award in the Exceptional Merit in Documentary Filmmaking category.[98][99]

Golan continued to produce and direct films after New Cannon, including Children of Wax with Armand Assante and Udo Kier, A Dangerous Dance and Marriage Agreement. In 2013, Golan announced sequels to several films he had produced at Cannon in partnership with MGM (successor-in-interest to the original Cannon), including Allan Quatermain and the Jewel of the East with Richard Chamberlain and Sharon Stone returning to their roles, Return of the Delta Force and American Ninja Apprentice with Michael Dudikoff, David Bradley and Steve James' daughter Debbi, alongside new original projects The Sniper with Mickey Rourke and Bruce Willis and The Golem with Al Pacino and Nastassja Kinski; however, Golan died before any were produced.[100]

2014: Rival documentaries

[edit]

In 2014, there were two documentary films released about Cannon Films. RatPac Entertainment released Electric Boogaloo: The Wild, Untold Story of Cannon Films, a documentary about Cannon Films, written and directed by Mark Hartley, and produced by Brett Ratner.[101] That same year, the Israeli documentary The Go-Go Boys: The Inside Story of Cannon Films was launched at the 2014 Cannes Film Festival.[102] As is noted at the end of Electric Boogaloo, Golan and Globus announced The Go-Go Boys shortly after they were approached to appear in Boogaloo, yet in true Cannon fashion, their movie beat Hartley's to release by 3 months.

2016–present: Rebel Way Entertainment

[edit]

In 2015, Globus sold "Globus Max" and returned to Hollywood to launch a new film production company, Rebel Way Entertainment. The company seeks to reconnect young and web-crazy audiences with the traditional theatrical experience.[103] As of February 2023, their only film is Deported (2020), directed by Tyler Spindel.

Filmography

[edit]
Main article: List of The Cannon Group films

See also

[edit]
  • MGM Home Entertainment, whose parent company MGM now owns most of Cannon films' library.
  • Warner Bros. Home Entertainment, Warner Bros. Home Entertainment (through the joint venture Studio Distribution Services) is also a new distributor under license from MGM Home Entertainment since July 1, 2020, as a result of MGM/Fox home media deal expiring on June 30, in which WB now managed to distributed the entire Cannon films' library (with MGM) in physical home media worldwide.
  • Paramount Pictures, the company that owns the television rights to most of the Cannon library.

References

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[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

The Cannon Group, Inc.

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The Cannon Group, Inc. was an American production and distribution company active from to 1994, renowned for its prolific output of low- to medium-budget action, exploitation, and genre films, particularly during the when it became one of Hollywood's most aggressive mini-majors. Originally founded as a small operation focusing on inexpensive features, including , the company transformed under new ownership into a high-volume producer that released dozens of movies annually, often emphasizing fast-paced , ninja-themed adventures, and star-driven vehicles for actors like and . Its relied on aggressive international sales, pre-sales financing, and into theater ownership, but ultimately collapsed due to overexpansion and mounting debt. Established on October 23, 1967, by young entrepreneurs Dennis Friedland and Christopher C. Dewey in New York, The Cannon Group initially operated under the name Cannon Releasing Corporation, distributing and producing modest-budget films to capitalize on the drive-in and markets. The company struggled financially in its early years but gained traction with low-cost productions budgeted around $300,000 each, including titles like Joe (1970) and early exploitation fare. In 1979, Israeli cousins and , experienced producers from their family-run Globus Group in , acquired Cannon for $500,000, relocating operations to and rebranding it as a go-to studio for B-movies with global appeal. Under their "Go-Go Boys" leadership—known for their energetic, hands-on style—Golan (as production head) and Globus (handling finances) ramped up output, peaking with 43 films released in 1986 alone, including hits like (1981), (1982), (1984), (1986), and (1985). The company's aggressive strategy involved securing high-profile talent with lucrative deals—such as paying Stallone $12 million for Over the Top (1987)—and diversifying into prestige projects like That Championship Season (1982) and Jean de Florette (1986) to gain respectability, though most output remained critically panned cult favorites. By the mid-1980s, Cannon had expanded into video distribution, television production, and even acquired a chain of theaters, but lavish spending and flops like Superman IV: The Quest for Peace (1987) led to financial strain, culminating in a $14.6 million quarterly loss in late 1986 and Chapter 11 bankruptcy filing in 1994. Assets were liquidated, with film libraries sold to MGM/UA, marking the end of the original era that produced over 200 features and left a lasting legacy in genre cinema despite its notorious reputation for schlock. The company was revived in subsequent years through various projects and entities, continuing its legacy in .

Company Overview

Founding and Early Structure

The Cannon Group, Inc. was incorporated in New York on October 23, 1967, by Dennis Friedland and Christopher C. Dewey, two entrepreneurs in their early twenties who had recently graduated from . Friedland, while still a student, co-founded the company as an production and distribution entity with initial offices in New York and . Dewey served as a co-founder and president from 1966 to 1979, helping establish the firm's operational foundation during its nascent phase. From its inception, the company focused on importing and distributing low-budget international films, with a particular emphasis on exploitation and B-movies, including English-language versions of Swedish films that capitalized on trends in sensational content. This approach allowed the young founders to build a niche in the independent film sector through savvy and of foreign titles, starting with modest resources and limited capital as a tightly run operation. By the early , the firm had developed expertise in exploiting niche audiences for such content, though it remained a small-scale without significant production ambitions at the outset. The company's early structure emphasized lean operations centered on distribution rather than large-scale production, reflecting the founders' background in and their initial financial constraints. This setup positioned Cannon as one of the first independents to finance and distribute its own slate of low-cost imports, laying the groundwork for future expansion. In 1979, amid financial challenges, Friedland and Dewey sold the company to Israeli cousins and for $500,000, marking the end of their leadership era.

Business Model and Operations

The Cannon Group, Inc. adopted a emphasizing low-budget, high-volume production of genre films in action, horror, and categories, particularly following its acquisition by and in 1979, to generate substantial profits through and quick turnaround. By keeping production costs low—averaging approximately $5 million per film compared to the industry standard of $10 million to $15 million—the company could finance multiple projects simultaneously, enabling an output of up to 43 films in a single year during its peak in the mid-1980s. This strategy prioritized rapid commercialization over high artistic expenditure, focusing on marketable exploitation elements to appeal to international audiences. The distribution approach initially centered on acquiring rights to foreign and independent B-movies for U.S. theatrical release, particularly through drive-ins and second-run cinemas, before transitioning to in-house production for greater control and volume. Under later leadership, Cannon secured key partnerships, including a comprehensive deal with MGM/UA for U.S. and Canadian distribution and arrangements with Viacom International for additional titles, while pre-selling rights in overseas territories—often based solely on promotional posters—to offset upfront costs. International operations formed a of the model, leveraging strong connections to Israeli cinema for local productions and extending to co-productions across to tap diverse funding and talent pools. These efforts facilitated expansion into European markets, where Cannon's films found significant popularity, supporting overall revenue growth. relied on aggressive advertising campaigns to build buzz for genre releases, complemented by robust distribution via Cannon Video, which partnered with Warner Home Video for widespread availability. The company implemented a proactive pre-sale strategy for , theatrical, and cassette rights in international markets, ensuring early cash flow to fund ongoing operations. Attempts at vertical integration included acquiring theater chains to streamline exhibition, such as the purchase of the sixth-largest U.S. chain, Commonwealth Theaters, alongside existing holdings in and the , positioning Cannon as an end-to-end entity from production to screening. The group also pursued tied to its film slate to diversify revenue streams beyond and video sales.

Historical Eras

Friedland/Dewey Era (1967–1979)

Dennis Friedland and Chris Dewey, both in their early twenties, founded The Cannon Group, Inc. in 1967 after meeting at , where Friedland studied law and Dewey pursued architecture. With an initial investment of $50,000 raised from friends and family, the young entrepreneurs entered the film industry by focusing on low-budget distribution and , capitalizing on their shared passion for cinema. The company's early operations emphasized importing and dubbing foreign exploitation films, particularly English-language versions of Swedish and Italian sex films, which aligned with the era's demand for sensational, low-cost content. This strategy yielded modest success, but Cannon's first significant foray into domestic production came with Joe (1970), a gritty drama directed by and starring as a bigoted factory worker who forms an unlikely alliance with a middle-class father seeking vengeance for his daughter's assault. Produced by Cannon Productions and distributed by Cannon Releasing Corp., the film marked a , grossing over $2 million and establishing the company as a player in exploitation cinema. Ventures into original productions remained limited during this period, with Cannon prioritizing distribution over expansive filmmaking amid tight budgets capped at around $300,000 per project. As the 1970s progressed, Cannon faced mounting financial difficulties, exacerbated by a series of underperforming films and shifts in film production tax laws that eroded profitability. By 1979, the once-promising studio had become debt-ridden, prompting Friedland and Dewey to sell their majority stake to Israeli cousins and for $500,000. This transaction ended the founders' era, transitioning Cannon toward a more aggressive expansion under new ownership.

Golan-Globus Era (1979–1987)

In 1979, Israeli cousins and acquired the struggling Cannon Group, Inc. for $500,000, relocating its operations from New York to to position the company at the heart of the American film industry. Golan assumed the role of chairman, overseeing creative decisions, while Globus served as president, managing financial and operational aspects. This acquisition marked a pivotal shift, transforming Cannon from a modest into a prolific production powerhouse. Under and , Cannon pivoted to in-house film production, releasing over 100 movies between 1979 and 1987, with annual output peaking at 43 films in 1986. The company capitalized on low-budget action franchises, including sequels to Death Wish starring , the series, and with , forging key partnerships that defined its output. These collaborations with stars like Norris, who appeared in eight Cannon films, and early projects featuring , such as (1985), helped build Cannon's reputation for high-octane, commercially oriented cinema. Cannon's business strategy emphasized aggressive pre-sales of international distribution rights to finance productions before filming began, minimizing and enabling rapid expansion. Complementing this, the Cannon Releasing Corporation handled domestic distribution, allowing the company to control the full pipeline from production to theaters. By 1986, these tactics propelled Cannon to a peak exceeding $150 million on the exchange, where its stock had climbed from 20 cents per share at acquisition to a high of $45.50.

Parretti Era and Acquisition (1987–1991)

In 1987, amid mounting financial pressures from aggressive expansion and underperforming films, Cannon faced severe liquidity issues and bankruptcy risks. The company's fortunes shifted dramatically in 1988 when Italian financier Giancarlo Parretti, through his holding company Pathé Communications, acquired control of Cannon for approximately $200 million, injecting initial funds of $100 million to avert immediate collapse. Parretti, who had begun investing in Cannon as early as 1987, renamed the entity Pathé Communications in 1989 and pursued even more aggressive growth, using Cannon's assets as leverage for larger acquisitions, with the company eventually delisted from under the new structure. A key example of overproduction during this transition was IV: The Quest for Peace (1987), originally budgeted at $36 million but slashed to $17 million due to cash shortages; the film grossed only $15.3 million worldwide, exacerbating Cannon's and drawing investor lawsuits alleging misleading financial disclosures. In June 1988, Cannon settled class-action suits from shareholders for $33 million, accused of inflating stock prices amid the SEC's ongoing inquiry into its practices. Parretti's ambitions peaked in March 1990 when announced a $1.2 billion deal to acquire , finalized in November 1990 for $1.3 billion with financing from . This hostile takeover, leveraging Cannon's diminished but strategic position in the industry, ballooned the combined entity's debt to over $1.5 billion, fueled by Parretti's opulent lifestyle and questionable funding sources. By mid-1991, defaults on loan repayments led to escalating lawsuits from investors and creditors, culminating in foreclosing on in May 1991 and assuming control of MGM-Pathé assets, including Cannon's film library sold back to to settle obligations. Parretti was ousted from management in July 1991 amid the foreclosure, facing immediate ; Italian authorities arrested him in December 1991 on charges related to his business dealings, while U.S. probes into tied to the MGM acquisition intensified. The bankruptcy filing for Communications in 1991 marked the effective end of Cannon's independent operations under Parretti, with remaining assets liquidated to cover the overwhelming debt.

Cannon Pictures Era (1989–1997)

In 1989, amid the financial collapse of the original Group, Italian financier Giancarlo Parretti restructured the remnants into Cannon Pictures, Inc. as a low-budget production and distribution subsidiary of Communications to handle outstanding projects and salvage assets. Veteran Italian film producer was appointed chairman and CEO, bringing European financing to support an initial slate of up to 10 films annually at budgets averaging $3–4 million each. This rebranding aimed to revive the Cannon name through modest action-oriented ventures, though Parretti's brief 1990–1991 takeover of via further integrated Cannon's operations into larger studio dealings. The era was marked by limited output and persistent financial strain, with Cannon Pictures releasing films like American Ninja 4: The Annihilation in 1990, acquired for domestic distribution to capitalize on the franchise's low-cost appeal. Other key titles included American Cyborg: Steel Warrior in 1993, a sci-fi actioner emblematic of the company's pivot to economical genre fare amid shrinking resources. Ongoing legal battles compounded these challenges, including lawsuits from actors such as in October 1992 over unpaid $1 million fees from a pay-or-play deal for the unproduced , and similar claims from regarding contract breaches. These disputes, tied to rights and mounting debts, highlighted the entity's post-bankruptcy vulnerabilities. By the early 1990s, Cannon Pictures entered negotiations, signaling a gradual wind-down as operations scaled back. A proposed 1990 sale of Pathé's 60% stake to Dutch firm Trihoof Filmprodukties—led by Assonitis—collapsed due to financing issues, further eroding stability. In 1994, video rights for portions of the library were distributed through Columbia TriStar Home Video, which handled home media releases for select Cannon titles alongside its own catalog. That same year, VMI Acquisitions Inc. purchased a , marking the final major transaction before full dissolution by 1997. The company's film library was ultimately dispersed, with acquiring the majority through the Pathé-MGM merger and retaining rights to several key titles via prior distribution pacts.

Later Developments and Revivals

New Cannon Era (1999–2002)

In 1999, Menahem Golan, co-founder of the original Cannon Group, established New Cannon, Inc. as an attempt to resurrect the Cannon brand after its dissolution in the 1990s. The company sought to capitalize on the legacy of low-budget action and exploitation films that defined Cannon's heyday, with Golan serving as producer and director. New Cannon's output was extremely limited, consisting primarily of straight-to-video and television features. Its debut production was the crime drama Death Game (2001), directed by Golan, which explored corruption and mob influence in college basketball. The company followed with two additional low-profile films: the thriller Crime and Punishment (2002) and the drama Return from India (2002), both emphasizing Golan's directorial involvement but lacking the ambitious slate initially envisioned for action revivals. Financial constraints and challenges in securing distribution beyond niche markets doomed the revival. Unable to replicate the original Cannon's production scale or , New Cannon, Inc. folded by late 2002, ending Golan's bid to relaunch the studio.

Documentaries and Legacy Projects (2014)

In 2014, two independent documentaries were released that examined the history and controversies of The Cannon Group, Inc., marking a significant moment of retrospective interest in the company's turbulent past. "Electric Boogaloo: The Wild, Untold Story of Cannon Films," directed by Mark Hartley, premiered at film festivals and chronicled the rise and fall of Cannon through the lens of its founders, and , highlighting their ambitious but often reckless expansion during the 1980s. The film featured extensive interviews with former Cannon stars and crew members, including , , and , who shared anecdotes about the behind-the-scenes chaos of productions like the financial flops The Apple (1980) and (1985), as well as unexpected successes such as (1986). Competing with Hartley's project was "The Go-Go Boys: The Inside Story of Cannon Films," produced and directed by Hilla Medalia, which took a more personal approach by centering on the life stories and partnership of and Globus as Israeli immigrants who transformed a small distribution outfit into a global B-movie powerhouse. This documentary included intimate interviews with the cousins themselves—prior to Golan's death in —alongside collaborators like producer Trevor Short and actor , delving into the human elements behind Cannon's excesses, such as overambitious acquisitions and rapid-fire filmmaking that led to both cult hits and box-office disasters. Neither project involved direct participation from The Cannon Group, Inc., which had long ceased operations, but both were independently funded efforts driven by filmmakers' fascination with the company's lore. "Electric Boogaloo" received widespread praise for its nostalgic humor and vivid archival footage, earning a 92% approval rating from critics on Rotten Tomatoes, who lauded its entertaining dissection of Cannon's schlocky legacy. In contrast, "The Go-Go Boys" garnered mixed reviews, with a 50% audience score on Rotten Tomatoes, appreciated for its focus on the founders' charisma but critiqued for lacking the broader satirical edge of its rival. The release of these films sparked renewed interest in Cannon's extensive catalog, prompting streaming availability for titles like Breakin' (1984) and Missing in Action (1984) on platforms such as Netflix, and inspiring discussions among film enthusiasts about the enduring appeal of the company's low-budget genre output.

Rebel Way Entertainment (2016–present)

Rebel Way Entertainment was established in 2016 by , the former co-owner of The Cannon Group, Inc., and his son Ori Globus in , , as an production and financing company aimed at reviving Globus's legacy in commercial filmmaking. The venture focuses on developing, producing, and financing feature films through close collaborations with filmmakers, emphasizing strategic partnerships with studios for distribution and global market reach. Building on Globus's experience from Cannon's high-output model, the company prioritizes genre-driven content, particularly thrillers and horror, to target theatrical and digital audiences. In December 2019, Rebel Way secured a $50 million financing deal with MGG Investment Group to fund a slate of films, marking a significant boost for its production ambitions. The first project under this agreement was Tension, a thriller directed by Darren Lynn Bousman, known for the Saw franchise, based on Bousman's immersive live experience The Tension Experience. Written by Scott Milam, the film follows four friends in an extreme Halloween horror simulation that turns deadly, positioning it as a potential franchise starter in the vein of Bousman's prior works. Earlier, in 2016, the company announced its inaugural production, the romantic comedy Deported (2020), directed by Tyler Spindel, which explores immigration challenges through a story of a couple separated by deportation. As of November 2025, Rebel Way has maintained a focus on independent financing and genre thrillers with an emphasis on horror and action elements, though its output remains limited to Deported as its sole release to date, with no further productions completed. The company continues operations without major successes, prioritizing talent-driven projects and ongoing development to expand its slate amid a competitive landscape.

Film Production and Legacy

Genres, Style, and Notable Productions

The Cannon Group, Inc. specialized in B-movie , characterized by rapid production schedules and low budgets that typically ranged from $1 million to $5 million per film, enabling a high volume of output aimed at quick theatrical releases or distribution. This approach prioritized exploitative over polished craftsmanship, often resulting in films with exaggerated action sequences, minimal polish, and a focus on genre tropes to capitalize on fleeting trends. Under the leadership of Israeli cousins and during their tenure from 1979 to 1987, the company produced dozens of such pictures annually, transforming Cannon into a prolific B-movie factory. Cannon's core genres encompassed action, horror, and science fiction, frequently blending elements of exploitation and spectacle to appeal to drive-in and midnight movie audiences. In action films, the studio emphasized martial arts and vigilante revenge narratives, exemplified by the American Ninja series (1985–1990), which starred Michael Dudikoff as a skilled soldier combating ninjas in exotic locales. Horror entries leaned into supernatural and creature features, such as the Howling sequels (1985–1989), including Howling II: Your Sister Is a Werewolf (1985), known for its campy werewolf lore and erotic undertones. Sci-fi productions explored cosmic horror and alien invasion themes, with Lifeforce (1985) standing out for its adaptation of Colin Wilson's novel The Space Vampires, featuring space vampires draining human life force in a visually audacious narrative directed by Tobe Hooper. Among Cannon's notable franchises, the Death Wish series contributed three sequels—Death Wish II (1982), Death Wish 3 (1985), and Death Wish 4: The Crackdown (1987)—extending Charles Bronson's vigilante archetype into increasingly violent urban revenge tales that amplified the original's themes of personal justice. The studio also developed eight action vehicles for Chuck Norris, including Missing in Action (1984), Invasion U.S.A. (1985), The Delta Force (1986), and Delta Force 2: The Colombian Connection (1990), which showcased his martial arts prowess in patriotic, high-stakes military scenarios. Additionally, the breakdancing pictures Breakin' (1984) and Breakin' 2: Electric Boogaloo (1984) captured the 1980s street dance craze, blending hip-hop culture with musical numbers to create upbeat, youth-oriented hits. Cannon's production style reflected strong Israeli influences, as Golan and Globus leveraged their background in Israeli cinema to shoot portions of films in cost-effective locations like and , incorporating international casts that mixed American stars with European and Middle Eastern actors for a global flavor. This approach fostered a appeal through excess, evident in bombastic trailers and over-the-top visuals that prioritized sensory overload, such as explosive fight scenes and lurid , turning many releases into staples. Culturally, Golan's hands-on involvement—often directing films himself, like the musical The Apple (1980)—contrasted with Globus's aggressive deal-making, which secured distribution deals and star talent to fuel the studio's ambitious slate.

Filmography Overview

The Cannon Group, Inc. produced approximately 200 feature films from 1967 to 1994, spanning theatrical releases, direct-to-video titles, and international co-productions that reflected its aggressive expansion into global markets. Theatrical output peaked during the 1980s under the Golan-Globus era, with 1986 marking the high point at 43 films released worldwide, including action-oriented films distributed through Cannon Releasing Corporation. Direct-to-video efforts, handled via Cannon Video, targeted home entertainment markets in the UK and US, often repurposing lower-budget productions for VHS distribution. International co-productions, such as those with European partners, expanded the slate but led to fragmented rights, exemplified by franchises like the Death Wish series. Post-dissolution in 1994, the Cannon library's rights were divided among major studios: the core catalog, including most pre-1986 titles, fell under MGM's ownership following its acquisition of the assets. retained North American theatrical and home media rights to select co-productions, such as (1986) and Over the Top (1987). As of 2016, North American television rights to the majority of the library are owned by , enabling broader broadcast availability. Revival efforts added modestly to the filmography. The short-lived New Cannon era (2001–2002), led by , resulted in several features, including (2001), (2002), and Return from India (2002), a drama about basketball corruption. Rebel Way Entertainment, founded in 2016 by , announced a slate of 3–5 projects by 2019, including the thriller Tension directed by and Deported (2020); though production status remains ongoing as of 2025 for some. The overall output includes notable omissions, such as unproduced projects from the ambitious 1986 slate like a planned adaptation and La Brava.

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