Elliott To Sell Hollywood Studio Stake

Jan 6 2012 | 9:09am ET

Elliott Associates has sold most of its stake in movie studio Relativity Media to private equity billionaire Ron Burkle.

Burkle, who late last year helped keep Relativity afloat with a $200 million loan to finance marketing and production costs for two Relativity films, will pau several hundred million dollars for the stake, according to published reports. He becomes the Hollywood studio's second-largest shareholder after CEO Ryan Kavanaugh.

Elliott will retain a smaller stake in Relativity and remains the studio's third-largest shareholder.

Kavanaugh has been seeking a buyer for Elliott's 49% stake in the studio since Elliott, which has financed the studio to the tune of more than $1 billion, began to tighten the strings. Elliott last year moved Relativity's former number two, Michael Joe, within the hedge fund to oversee the studio. Joe announced his resignation from Elliott this week due to the hedge fund's reduction of focus—and investment—in the firm industry.

"My passion is to be an active participant within the media and entertainment industry," Joe said.

Joe's successor as vice president for international business development at Relativity, Paul Davidge, left the studio this week, following the exit of Brian Edwards as chief operating officer in October. President Steve Bertram is also mulling an exit, according to TheWrap.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...