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Universal Pictures signs $1 billion film co-financing deal with private equity group

Universal Pictures signs $1 billion film co-financing deal with private equity group

Universal Pictures has signed a deal worth at least $1 billion (euro660 million) with a private equity group that will co-finance at least 75 percent of the studio's films through 2011.
Universal agreed with Relativity Capital, a partnership between deal maker Ryan Kavanaugh's West Hollywood-based Relativity Media LLC and the New York hedge fund Elliott Associates LP, on the financing deal.
The arrangement announced Wednesday allows Universal to exclude up to two films a year from the partnership so it can keep 100 percent of the profits from its most likely smash hits.
Relativity has the right to reject up to three films per year to avoid bankrolling the riskiest productions.
The majority of films, however, will be co-financed, giving Relativity a 50 percent share in the profit of about 45 films over the next four years.
"They're investing in our track record," said Universal Pictures senior vice president Stacy Ivers.
Universal Pictures, whose parent NBC Universal is 80 percent owned by General Electric Co., this summer plans to release "The Mummy III: Tomb of the Dragon Emperor," and "Hell Boy II: The Golden Army."
It was not immediately clear if those films would be co-financed under the deal.


Updated : 2021-03-05 15:55 GMT+08:00