Reducing its overhead costs in a turbulent economy, Universal Pictures
sold its low-cost horror, action and comedy film label to financing partner Relativity Media LLC. The Rogue Pictures label -- which Universal will continue to distribute -- has had success with movies such as "The Strangers" and is one of two labels in Universal's portfolio. The Rogue sale comes as a
distribution deal between Steven Spielberg's DreamWorks and Universal is likely to run into financing trouble.
General Electric Co.'s Universal may be in for bigger change. The New York Times, which reported the deal value at $150 million, noted that it's unclear if GE will take another step in revamping its entertainment business. But there's speculation about the conglomerate trying something as aggressive as a spinoff of its movie and television operations over the next year.
While GE is streamlining, the AP reported that Relativity, run by dealmaker Ryan Kavanaugh, is seeking to get
deeper into film production, adding up to $2 billion in new funds to co-finance about 75% of Universal's upcoming movies through 2015. Rogue has about 30 projects in development. -
Baz HiralalGo to the NYT storySee the AP article
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