If you’re lucky enough to be based in the UK (like I am!) then tonight sees the premiere of the new James Bond film ‘Spectre’. And with a final budget of over $350 million, it wouldn’t be completely absurd to suggest that Sony Pictures, a subsidiary of Sony Corporation (Ticker: SNE) have ‘bet the farm’ on the 24th Bond production. Of course, this isn’t actually true – Sony Corp has a market cap over $36 billion – but there’s certainly a lot hanging on the release for their studio subsidiary, and over the last twelve months there have been as many twists and turns in the Sony/Spectre story as a typical Bond plot.

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The Villains Are All Computer Hackers Nowadays

One of the key issues the film will explore is the way intelligence is gathered, with the 00 program headed for the scrapheap in favor of a vast multi-national computer snooping program called ‘Nine Eyes’. In many ways this builds on some of the ground covered in the film’s box-office topping predecessor ‘Skyfall’, in which the villain was a computer hacker extraordinaire.

And then what happened? Sony got hacked. By North Korea, allegedly. And the result? Sony stock pulled back briefly, and then continued to rise.

But the hack led to the release of a slew of emails giving fascinating insight into the behind-the-scenes deal making that has funded this vast $350 million production. The leaked emails revealed that the Bond producers made some significant amendments to the film’s plot and visual presentation in order to secure tax incentives from the Mexican government.

James Bond himself also benefited from a pay rise, with Daniel Craig earning a hefty $48 million to star in ‘Spectre’ and its follow-up. This didn’t stop him stating in interviews earlier this month that he’d rather slash his wrists than make another Bond film, but by then the Sony marketing machine was full steam ahead and the stock was clearly in accumulation.

Product Placement and Stock Dilutions

And how did Sony Pictures plan to cover these costs? The film is expected to be packed with product placements, notably from car manufactures Aston Martin, Jaguar and Land Rover (TTM), as well as Belvedere Vodka and Heineken (HEINY).

But by far the most significant capital raising venture came from the parent company in June of this year, and eclipsed the kind of figures involved in the production of Spectre. Sony Corp announced plans to raise around $3.6 billion through new shares and bonds, representing the first new share issue from Sony in 26 years. Unimpressed with prospect of diluted per-share earnings, investors ditched the stock and it fell 8%.

Sony Pictures and MGM

Spectre is actually quite possibly the last Bond film that will be made under Sony Pictures. The contract between MGM and Sony will end following the release of ‘Spectre’, and while Sony will doubtless seek to retain the distribution rights, the competition for the deal is expected to be fierce. Discussing the end of the established James Bond deal, Sony Pictures Chairman Tom Rothman commented:

The reality is that Sony’s had a fantastic run with the Bonds. Sure we’re going to compete for the rights, but let’s be honest, so is everybody in the business.

From all of this you’ve most likely concluded: ‘Spectre’ isn’t actually that big of a deal for Sony. Or maybe that’s what some shadowy organization wants you to think, and somewhere at the head of a table a bald headed man sits stroking a cat, asking menacingly: “Number Nine, report on your progress with the Sony pump-and-dump scam” . . .