Wednesday, 22 October 2014
Last updated 7 hours 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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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