Another Hollywood Split

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Cruise's camp says that even before Redstone's comments, Cruise/Wagner was securing $100 million in hedge-fund money to finance films independently. "We decided that the best direction for us is to do something where we lead the way in terms of where the film industry is going," says Cruise's producing partner Paula Wagner. The private-equity model has suffered some high-profile failures, like this year's big-budget flop Poseidon, but new investors continue to rush to Tinseltown. In September, Flyboys, at $60 million one of the most financially ambitious and risky films funded entirely by private investors, lands in theaters. With expensive period sets and complex aerial battle scenes, the producers kept the film about World War I flying aces on budget by scrimping on one thing: the movie has no stars.