The Cannon Group, Inc.

The Cannon Group, Inc.
Company type	Conglomerate
Industry	Motion picture industry
Founded	October 23, 1967; 59 years ago
Founder	Dennis Friedland, Chris Dewey
Defunct	1994
Headquarters	United States
Area served	International
Products	Motion pictures, film distribution, cinema chains, video distribution

The Cannon Group, Inc. was a prominent American conglomerate, encompassing Cannon Films, that operated in the motion picture industry from 1967 until 1994. The enterprise broadened its scope by venturing into international cinema chains and video distribution, securing rights to an extensive array of classic film collections. Its eclectic library included popular 1980s action B-movies such as Missing in Action (1984), American Ninja (1985), and Bloodsport (1988), alongside critically acclaimed productions like Joe (1970), Runaway Train (1985), and Street Smart (1987), which received Oscar nominations.

1967–1979: Friedland/Dewey period

Established on October 23, 1967, by business partners Dennis Friedland and Chris Dewey, Cannon Films initially gained momentum by producing English-dubbed versions of Swedish softcore films helmed by Joseph W. Sarno, including titles like Inga (1968) and To Ingrid, My Love, Lisa (1968). By 1970, the company escalated its production efforts with releases such as Joe, featuring Peter Boyle.

The company adhered to a stringent financial strategy, limiting production costs to $300,000 per project to maintain fiscal discipline and profitability. The commercial success of Joe bolstered Cannon’s industry standing. Nevertheless, a succession of box office disappointments in the mid-1970s, coupled with modifications to film-production tax legislation, adversely affected Cannon's financial health and stock market valuation.

1979–1987: Golan-Globus period

Facing severe monetary challenges by 1979, founders Friedland and Dewey sold the company for $500,000 to Israeli cousins Menahem Golan and Yoram Globus. The new leadership adopted a strategy centered on acquiring low-budget screenplays and focusing primarily on action films, tapping into the thriving 1980s B-movie segment. Among their notable achievements was producing sequels to the Death Wish series starring Charles Bronson; Death Wish II (1982) notably earned over $40 million against an $8 million budget.

Cannon’s slate featured well-known action franchises headlined by Chuck Norris, including Missing in Action (1984), Invasion U.S.A. (1985), and The Delta Force (1986). Although these movies drew criticism for their resemblance to the Rambo series, they played a pivotal role in expanding Cannon’s market presence. Additionally, the company ignited a global fascination with ninjas through "The Ninja Trilogy" and other related films starring Sho Kosugi, alongside productions such as Treasure of the Four Crowns, King Solomon's Mines (1985), and Exterminator 2.

Their most lucrative project was Cobra (1986) featuring Sylvester Stallone, which grossed $160 million on a $25 million investment. Beyond action films, Cannon diversified into musicals, comedies, erotic dramas, science fiction, fantasy genres, and serious cinematic works by directors like John Cassavetes and Franco Zeffirelli.

Under Globus’s guidance, Cannon aggressively expanded worldwide using pre-sale financing methods that leveraged deposits from international distributors as well as home video and television rights. Initial funding came from Slavenburg's Bank in the Netherlands before shifting to Credit Lyonnais. In 1982, Cannon formed a North American distribution partnership with MGM/UA and broadened its European reach by acquiring Gala Films in the United Kingdom and establishing distribution agreements with UGC in France.

In 1985, Cannon secured rights from the Salkinds to produce forthcoming Superman films and arranged a distribution deal with Warner Bros., aiming to enhance its position within the superhero film market. By 1986, the company was producing 43 films annually with Golan serving as chairman and Globus as president. Their projects included adaptations of Zorba and American Buffalo, as well as an unrealized live-action Barbie movie. They also explored television adaptations and launched the Cannon Movie Tales series.

Critically, Cannon gained recognition for backing unconventional projects; notably, its Dutch production The Assault won the Academy Award for Best Foreign Language Film in 1987. However, some heavily promoted titles like Lifeforce (1985) and Masters of the Universe (1987) failed to achieve commercial success.

The company pursued vertical integration by acquiring film distributors and theater chains across Europe—including Thorn EMI Screen Entertainment—and in the United States through Commonwealth Theaters. During the mid-1980s, Cannon owned film rights to Spider-Man with plans for a movie that never came to fruition due to rights reverting to Marvel after 1990. This resulted in prolonged litigation before Sony eventually released a successful adaptation in 2002.

Cannon’s films generally performed better commercially in the UK than in the US market, motivating acquisitions of British cinema chains and launching a joint venture mail-order video service with Columbia House Europe. The company’s UK theater holdings were sold to Virgin Group in 1995. In 1986, Cannon purchased Thorn EMI Screen Entertainment for £175 million and collaborated with The Rank Organization to license films for broadcast on BBC television—further expanding its corporate footprint and influence across European markets.

1987–1991: The Parretti Period

By 1988, Cannon encountered serious financial strain caused by a declining film market and a series of box office disappointments, including the expensive production of Superman IV: The Quest for Peace (1987), whose budget was drastically reduced from $36 million to $17 million. Early signs of Cannon’s monetary instability surfaced in 1986, with reports highlighting the founders Golan and Globus employing aggressive business methods, numerous legal disputes, and deteriorating relationships within the industry. Notably, Dustin Hoffman initiated legal action against Cannon over contract violations related to advertising promotions.

Cannon entered into a $75 million agreement with Warner Bros. to oversee certain assets; nonetheless, losses continued to accumulate. After acquiring Thorn EMI’s holdings, Cannon became financially overextended and approached insolvency. In May 1987, it sold the Thorn-EMI library, consisting of 2,000 titles, to Weintraub Entertainment Group for $85 million and withdrew from the HBO/Cannon Video partnership as financial difficulties persisted.

The U.S. Securities and Exchange Commission launched an inquiry into Cannon for alleged financial misrepresentations. On the verge of collapse, Cannon was purchased by Pathé Communications, led by Italian financier Giancarlo Parretti and funded by the French bank Crédit Lyonnais. Pathé restructured the company through a $250 million refinancing plan aimed at resolving debt issues. By 1989, Golan resigned due to conflicts with Parretti and Globus and founded 21st Century Film Corporation, while Globus remained involved with Pathé.

Among the final major releases under Golan and Globus was the post-apocalyptic action movie Cyborg, which utilized sets from abandoned projects. Directed by Albert Pyun and starring Jean-Claude Van Damme, it reflected Cannon’s focus on cost-effective filmmaking.

During Parretti’s stewardship, Cannon underwent rebranding and reorganization; Globus assumed the role of co-president at Pathé Communications and chairman of Cannon International. Executive Alan Ladd Jr. was appointed chairman of Pathé Entertainment. In 1989, Pathé approved several productions including The Russia House, Quigley Down Under, and Fires Within, while also announcing ambitious projects such as Thelma & Louise. A domestic theatrical distribution arrangement was secured with Warner Bros.

Parretti submitted a $1.2 billion offer to acquire Metro-Goldwyn-Mayer, backed financially by Crédit Lyonnais. After completing the acquisition, he merged Pathé Communications with MGM to create MGM-Pathé Communications. The majority of the former Cannon catalog was incorporated into MGM’s holdings. Parretti swiftly dissolved the MGM/UA Home Video division, resulting in eighty job cuts to improve operational efficiency.

In July 1991, Crédit Lyonnais took control from Parretti following loan defaults and filed suit to remove him and his associates from MGM’s board. Parretti countered with legal action but was ultimately convicted in 1996 for perjury related to falsified documents claiming control over MGM. He fled Italy prior to sentencing amid accusations concerning misuse of MGM’s French assets.

A California court mandated Parretti to pay $1.48 billion to Crédit Lyonnais in 1997. After a federal indictment in 1999 for fraud alongside Florio Fiorini, Italian authorities detained both men pending extradition to the United States; however, Parretti was subsequently released under restrictions in his hometown of Orvieto.

This era underscores profound transformations in corporate governance, leadership disputes, and financial instability that significantly affected Cannon’s market standing and international operations during Parretti’s leadership.

1989–1997: The Cannon Pictures, Inc. Period

In 1989, Parretti revived the Cannon brand as Cannon Pictures, Inc., concentrating on producing low-budget movies with Italian producer Ovidio G. Assonitis at the helm. At Milan's MIFED market, the company presented a $50 million lineup featuring stars such as Chuck Norris (Fifty/Fifty, Delta Force 2), Michael Dudikoff (Wings, American Ninja 4), along with Jean-Claude Van Damme and Charles Bronson. By the end of that year, Cannon achieved a modest operating profit. The film JAM was retitled Lambada (1990) to leverage the popularity of the dance trend.

After the MGM-Pathé merger, Parretti sought to sell Pathé’s 60% share in Cannon Pictures to Assonitis and other investors for $14 million, including the Wiltshire Boulevard office property; however, this transaction fell through due to funding complications. Subsequently, at a board meeting, Assonitis and vice-chairman William J. Immerman were ousted and replaced by Danny Dimbort. Pathé ceased Cannon’s marketing and casting departments, absorbing marketing duties into its own structure. Christopher Pearce took over from Assonitis and acquired Pathé’s stake for $14 million, while Pathé retained distribution rights for selected films.

Under Pearce’s direction, Cannon continued contracts with Bronson, Norris, and Dudikoff, unveiling an 11-film slate for 1991 including titles like Fifty/Fifty, No Place to Hide, and The Hitman. Richard Inouye joined as vice president and chief financial officer. Warner Home Video secured a decade-long distribution agreement covering North America, the UK, Japan, Italy, and Australia. By Cannes in 1991, the lineup expanded to 18 films with additions such as American Kickboxer, Delta Force 3, and Ninja: The American Samurai.

In July 1991, Crédit Lyonnais’ foreclosure on Parretti cast uncertainty over Cannon’s ownership amid undisclosed internal board disputes involving Pearce and Dimbort. Globus was dismissed from litigation and formed Melrose Entertainment for international sales alongside Pearce’s Global Pictures. Following MGM-Pathé’s foreclosure, Pearce resigned from Global Pictures and was succeeded by Avi Lerner.

A management restructuring in early 1992 aimed to enhance revenue streams; The Hitman emerged as an initial success. In March of that year, Cannon filed suit against Vision International over Chuck Norris’ billing in Sidekicks, citing exclusive contractual obligations from the 1980s. At Cannes 1992, Pearce and Globus announced intentions to merge Melrose Entertainment, Global Pictures, and Cannon Pictures into the Cannon Entertainment Group, featuring projects such as Chicago Loop, Delta Force IV, and the television series that evolved into Walker, Texas Ranger. Joe Lara signed a ten-picture contract but no resulting films materialized.

By mid-1992, disagreements over financing with Crédit Lyonnais led to the dissolution of this merger plan. Despite Cannon’s financial struggles, CBS commissioned 13 episodes of Walker, Texas Ranger. Legal challenges surfaced as James Spader sued over unpaid fees for Chicago Loop, while Michael Dudikoff initiated litigation for unpaid work on four films.

For the nine months ending September 1992, Cannon reported a net profit of $1.3 million and secured a $15 million credit facility from ING Bank after Crédit Lyonnais withheld further loans pending repayment of outstanding debts. Early in 1993, production on Walker, Texas Ranger stalled due to funding partner Banca Nazionale del Lavoro's scandal involving unauthorized loans to Iraq; CBS later provided funds necessary to complete the series. By August 1993, quarterly net profits doubled to $1 million largely attributed to the show's success.

During late 1993 and early 1994, Cannon faced lawsuits initiated by financiers over breach of contract claims and accusations of takeover interference linked to Pearce’s stock sales. A failed acquisition attempt by Panda Pictures resulted in a $20 million damages suit alleging financial misrepresentation.

Cannon’s final theatrical release was Hellbound in 1994 before Pearce sold controlling interest to VMI Acquisitions Inc., which resolved some outstanding debts. Creditors including Charles Bronson filed suits seeking bankruptcy proceedings; consequently, the company entered Chapter 11 protection. The court issued injunctions preventing Pearce’s unauthorized sales of disputed titles at international markets.

In early 1995, the bankruptcy court established deadlines for creditor claims. By August 1997, Cannon’s film library—comprising 135 titles plus an additional 112 from its predecessor—was auctioned off and acquired by Imperial Entertainment.

In February 1998, a court ruled that Assonitis had been unjustly terminated by Parretti and Pathé, awarding him $2.9 million in damages amid Pathé’s bankruptcy proceedings following Crédit Lyonnais’ foreclosure action.

2001–2002: The New Cannon, Inc. Phase

In 2001, Menahem Golan, the original founder, made a comeback to the film sector by establishing New Cannon, Inc.. Evgeny Afineevsky took on the role of president, overseeing operations from Los Angeles while Golan managed affairs in Tel Aviv. Their first film release under this banner was Crime and Punishment (2002), a project initially shot in 1993 under Golan's 21st Century Film Corporation but postponed due to bankruptcy proceedings. The lineup also featured Death Game, a reinterpretation of Fritz Lang's M, Kumite (which was later renamed Final Combat but never released), and Open Heart (which was distributed as Return from India).

By the time of the 2002 Cannes Film Festival, New Cannon had finalized Death Game and Return from India, and unveiled plans for a new film titled Beauty and the Beast, directed by Pharaoh Phillips. They also promoted earlier releases such as Train to Hell alongside the unreleased In Search of A Woman. Later that year, Vision Films acquired New Cannon; subsequently, Afineevsky founded New Generation Films to produce Oy Vey! My Son Is Gay!!, adapted from a script by Golan. Afineevsky later gained acclaim for documentary works including Cries from Syria and the Academy Award- and Emmy-nominated Winter on Fire: Ukraine's Fight for Freedom.

Meanwhile, Golan continued his work producing and directing films like Children of Wax, A Dangerous Dance, and Marriage Agreement. In 2013, he announced plans to develop sequels to Cannon’s iconic titles in collaboration with MGM—the successor company to the original Cannon—including projects such as Allan Quatermain and the Jewel of the East, Return of the Delta Force, and American Ninja Apprentice. New original ventures included The Sniper, starring Mickey Rourke and Bruce Willis, as well as The Golem featuring Al Pacino and Nastassja Kinski. Unfortunately, Golan passed away before these productions could come to fruition.

2014: Competing Documentaries

Two documentaries about Cannon Films debuted in 2014. RatPac Entertainment released Electric Boogaloo: The Wild, Untold Story of Cannon Films, directed by Mark Hartley and produced by Brett Ratner. In the same year, the Israeli documentary The Go-Go Boys: The Inside Story of Cannon Films premiered at the 2014 Cannes Film Festival. Interestingly, Golan and Globus had announced their project The Go-Go Boys after being invited to participate in Electric Boogaloo, but their documentary premiered three months earlier—demonstrating Cannon’s enduring competitive nature.

2016–present: Rebel Way Entertainment

In 2015, Yoram Globus divested "Globus Max" and founded Rebel Way Entertainment in Hollywood with a focus on engaging younger, internet-oriented audiences while aiming to rejuvenate traditional cinema-going experiences. As of February 2023, Rebel Way’s only release remains the film Deported (2020), directed by Tyler Spindel.

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