Elliott Sells Studio Stake To Burkle

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.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note