Hollywood
Relativity Media gets $100 million in new funding
MUMBAI: It seems as if the financial woes of the Ryan Kavanaugh-led Relativity Media LLC might just be over. The company has claimed to have successfully completed new financing commitments in excess of $100 million, in anticipation of its emergence from chapter 11 in February.
The new financing includes more than $100 million in additional commitments from current investors including Macquarie Bank; Joseph Nicholas and Kavanaugh, Atorus Investment Management LLC chief investment officer Carey Metz and new investors such as TomorrowVentures and Carat Global as well as VII Peaks Capital.
The new financing is separate from the approximately $180 million in Relativity senior debt acquired by Kavanaugh and Nicholas during the course of the company’s chapter 11 process, however it is anticipated that this debt will be converted pursuant to the plan of re-organisation.
This financing is in addition to the post emergence ultimate facility, an asset backed facility being syndicated by GHL & Company and Aperture Media Partners.
In addition, since Carat Global has agreed to extend credit to Relativity for its P&A capital, Relativity’s debt need is much less than expected.
“With the total financing commitments now successfully in place, we remain focused on emerging from chapter 11 and moving forward with our robust slate of films and our continued evolution as a 360 degree content engine,” said Kavanaugh.
Kavanaugh and Nicholas, will be co-managers of Relativity’s parent company, Relativity Holdings, with a robust management and finance team to oversee the 360 vertical from film and television to branding, sports, digital and Relativity Education.
As was reported by Indiantelevision.com, earlier this month, Relativity acquired Kevin Spacey and Dana Brunetti’s entertainment production company Trigger Street Productions. At Relativity, Spacey will become chairman of RelativityStudios and Brunetti will become president of Relativity Studios where they will oversee all film and television operations.
Hollywood
WBD sets April 23 vote on $110bn Paramount Skydance merger
Investor approval key step, but regulators loom over mega media deal
NEW YORK: Warner Bros. Discovery has set April 23 as the date for shareholders to vote on its proposed $110 billion merger with Paramount Skydance, marking a crucial step in one of the biggest media deals in recent years.
The all-cash transaction offers WBD shareholders $31 per share, a hefty 147 per cent premium to its unaffected stock price, signalling strong intent to push the deal across the finish line. The company’s board has unanimously backed the merger and is urging investors to vote in favour.
Even if shareholders give the green light, the deal is far from done. Regulators in the United States and Europe are expected to scrutinise the merger closely, weighing concerns around competition and potential price impacts for consumers.
To keep investors on side, WBD has built in a safety net. If the deal is not completed by September 30, shareholders will receive a quarterly “ticking fee” of $0.25 per share until closure.
The proposed merger would significantly reshape the media landscape, combining the assets of Warner Bros. Discovery with those linked to Paramount Global and Skydance Media. It would also cement the growing influence of David Ellison, who has been steering Skydance’s aggressive expansion strategy.
“The WBD Board has been guided by the singular principle of securing a transaction that maximises the value of our iconic assets and delivers as much certainty as possible to our shareholders,” said Warner Bros. Discovery board chair Samuel A. Di Piazza Jr.. “This historic transaction will expand consumer choice and create new opportunities for creative talent.”
Warner Bros. Discovery chief executive officer David Zaslav added that the company is working closely with its counterpart to close the deal and unlock value for stakeholders.
With investor backing likely but regulatory hurdles ahead, the proposed merger is shaping up to be a defining moment for the global entertainment industry, where scale, content and competition are increasingly intertwined.
