Relativity Media Spins-Off Beverly 2 to Elliott
(Beverly Hills, CA) June 1, 2011 – Relativity Media and Elliott Management Corporation announced today by joint decision they are spinning off the co-finance vehicle with Universal, dubbed Beverly 2, to funds managed by its long-time strategic partner Elliott Management Corporation. Elliott Media Investments LLC, a newly created affiliate of the funds, will manage Beverly 2. At the same time, Elliott has agreed to invest additional capital into Relativity to help further its 2012 home-grown production slate.
The spin-off of Beverly 2 will allow Relativity to avoid the inherent conflicts of interest that have arisen as a result of Relativity's move into distribution (as recently evidenced by the competing Universal and Relativity Snow White projects).
Relativity will remain a production company on each Universal-selected film and Ryan Kavanaugh will remain an Executive Producer. Relativity will now receive a producer fee on each Beverly 2 film for its production services. Relativity will solely be a production partner with Universal.
"As our core business of developing, producing and distributing our own product has grown to be competitive in size and scope with the majors, this move allows us to focus our energy on that business," said Kavanaugh, CEO and majority shareholder, Relativity Media.
“This move allows Relativity to focus on producing and distributing its own home-grown product," said Michael Joe, President of Elliott Media Investments. Joe was recently installed in his new position pursuant to a joint decision by Elliott and Relativity.
ABOUT RELATIVITY MEDIA, LLC
Relativity Media is a next-generation studio engaged in multiple aspects of entertainment including full-scale film and television production and distribution, the co-financing of major studio film slates, music publishing, sports management, and digital media. Additionally, the company makes strategic partnerships with, and investments in, media and entertainment-related companies and assets.
To date, Relativity has committed to, produced and/or financed more than 200 motion pictures. Released films have accumulated more than $15 billion in worldwide box office receipts. Relativity’s recent films include: Bridesmaids, Hop, Limitless, Battle: Los Angeles, Season of The Witch, Little Fockers, The Fighter, The Social Network, Salt, Despicable Me, Grown Ups, Dear John, It’s Complicated, Couples Retreat, and Zombieland. Upcoming films for Relativity include: Shark Night 3D, Immortals, Anonymous, and Cowboys & Aliens. Thirty-six of the company’s films have opened to No. 1 at the box office. Relativity films have earned 60 Oscar® nominations, including nods for The Fighter, The Social Network, The Wolfman, Nine, A Serious Man, Frost/Nixon, Atonement, American Gangster and 3:10 to Yuma. Fifty-seven of Relativity’s films have each generated more than $100 million in worldwide box-office receipts.
Relativity also owns and operates Rogue Pictures, a company that specializes in films targeted to the 13-25 year old audience, and RogueLife, Relativity’s digital studio which is developing original content for the Web, and creating sustainable online platforms and communities. RelativityREAL, Relativity’s television arm, is currently producing 14 series and more than 20 pilots including Police Women for TLC, Coming Home for Lifetime, and The Great Food Truck Race for Food Network.