Thursday, 31 July 2014
Last updated 1 hour ago
Jan 24 2012 | 1:12pm ET
Elliott Associates has completed its deal to sell most of its stake in movie studio Relativity Media.
The hedge fund, which had owned 49% of the studio, sold a majority of that stake to private equity billionaire Ron Burkle. Elliott, which has invested more than $1 billion in Relativity, remains the studio's third-largest shareholder; the largest shareholder is CEO Ryan Kavanaugh.
Burkle in December threw Relativity a lifeline in the form of a $200 million loan to cover marketing and production costs for two movies.
"We've spent a lot of time analyzing the media industry, and have looked at virtually every asset out there," Burkle said. "Relativity makes sense. They run their business like a business, focusing on profitability, internal rates of return and the factors that many Hollywood based businesses don't focus on. Their platform and foundation is unparalleled, and I believe together we will be able to grow the business in a manner which continues to evolve the industry and sets new benchmarks."
Kavanaugh has been seeking a buyer for Elliott's stake for months, after the hedge fund started to rein in its financing.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…