Friday, 30 September 2016
Last updated 18 min ago
Mar 7 2011 | 10:53am ET
Paul Singer may not aspire to be a Hollywood mogul himself, but he's helping to create one.
Singer's hedge fund, Elliott Associates, has given more backing to film studio Relativity Media, which in turn has used the new investment to win a bank credit facility in excess of $200 million. The new financing has relativity, led by Ryan Kavanaugh, thinking big.
The new money and credit "allows us to be a competitive, full-fledged studio," Kavanaugh told Variety. "We have moved into the distribution business, doubled the size of our team, inked significant deals with Netflix, Technicolor and others. It has become a full-fledged studio—and the infusion of capital will allow us to compete with the major studios.
Elliott helped launch Relativity and in 2008, along with private equity firm Relativity Capital, putting up $1 billion to help Relativity co-finance most of Universal Pictures' movies in a deal that expires this year. Last year, Elliott and Relativity considered buying bankrupt studio Metro-Goldwyn-Mayer.
Relativity plans to make between nine and 10 films this year, buying another five or six to make a total of at least 15 films distributed per year. The studio is behind the new movie "Take Me Home Tonight," which was released Friday, and has Robert De Niro's "Limitless" coming out later this month.