Relativity, Elliott In Film Fund Spin-Off Deal

Jun 6 2011 | 1:15pm ET

Rumors of the divorce between Relativity Media and Elliott Associates appear to be greatly exaggerated.

The former will invest more in the latter, rather than having its investment bought out. In exchange, Relativity has agreed to spin off its film fund—backed by Elliott for the past three years—to the hedge fund.

"As our core business of developing, producing and distributing our own product has grown to be competitive in size and scope with the majors, this move allows us to focus our energy on that business," Relativity CEO Ryan Kavanaugh said.

The film fund will be managed by Michael Joe, the former Relativity president hired by Elliott last month to lead Elliott Media Investments.

Last week, it was reported that Kavanaugh was seeking a buyer for Elliott's stake in the studio—the hedge fund has invested more than $1 billion in Relativity—but Elliott said it was not planning to sell its piece.

Relativity reportedly has an option to buy Elliott out.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

CAIS: How Technology is Disrupting the Alternative Investment Industry

Nov 7 2017 | 5:35pm ET

If there’s one thing that alternative investment professionals can agree on, it...