For many years throughout the 80’s decade, Coca-Cola had the hearts of millions around the world with its thirst quenching extravagant drinks. Coca-Cola also surprised many of its fans with great epic movies such as, Ghostbusters and the Karate Kid. They have also brought other blockbuster films to the big screen all through the it’s newly found ownership of Columbia Pictures, thanks to Herbert Allen. Coca-Cola fist purchased Columbia Pictures in 1982 just prior to production of the infamous well known Diet Coke beverages. During the time of this era, Coca-Cola was between a struggle and in one of its toughest decades financially in many years. This was all vastly caused by a newly elected chairman named Roberto that was anticipating to create a whole new chapter that had generally nothing to do with what Coca-Cola stand for.
During the time of Coca-Cola acquiring the production of Columbia Pictures, movies and television was at its peak of formulating possible investment opportunities. The entire United States entertainment industry was flooded with healthy investments and could easily produce significant growth during the early 80’s. This was also greatly driven by the push of cable television and home videos and also created a large increase in consumer demand for more product. It was a perfect time for Coca-Cola to purchase Columbia Pictures because the company was on a rise for success.
When Coca-Cola bought Columbia Pictures, the offer was quite pricey. The company offered nearly $750 million which in turn quickly tripled Columbia Picture’s stock prices. This also eliminated any other offers that any other companies were negotiating at the time because of such a high priced bid by Coca-Cola. When Coca-Cola purchase Columbia Pictures, the company was seen as its first big step outside of the regular formality of the business. Many critic and analyst were always questioning the purpose and point of the deal and many criticized they idea because Coca-Cola had absolutely nothing to do with the entertainment business. Immediately after the deal was completed with Columbia, CBS and HBO formed a new company called TriStar Pictures. This newly implemented studio company greatly increased the production of Columbia Pictures and at the same time produced no financial risk. This production set a fast paced tone for Columbia and in return it won several awards in the process.
While operating, Columbia provided most of the financial backup for all the movies and other theatrical releases. Television also played a major role in the profits of Coke’s ownership over Columbia pictures. During this time many daytime television series were produced such as, Different Strokes, the Jefferson’s, and The Young and the Restless. They even purchased several more enterprises that produced well known game shows such as, Wheel of Fortune and Jeopardy. Coca-Cola has enormously profited from the purchase of Columbia Pictures and is still making their mark until this day.
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