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Ex-Relativity Media President Michael Joe Leaves Elliott
Bloomberg is reporting that billionaire Ron Burkle has agreed to buy Elliott Management Corp’s minority stake in Ryan Kavanaugh’s Relativity Media, citing two people with knowledge of the situation. ”The sale price was in the hundreds of millions of dollars, said one person, who declined to be identified because the deal hasn’t been announced. No comment from either Elliott Management or Relativity. Deadline has its own story in the works.
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BOOM! score one for Ryan Kavanaugh! I need to say it, for all the crap people talk about him, about a HOUSE OF CARDS, I have to believe its a bunch of bitter old BIDDIES and assistants making coffee runs that are upset he didn’t have to suffer years of abuse like they did. Give this guy some credit for blazing a trail and doing it different than everyone else. He may not be able to pick a movie, but man did he build an empire, and he got the last laugh again. Another Billionaire cant be wrong. Good for you Ryan, I Salute you.
Uh…Boom? A sale price in the “hundreds of millions”? That would mean that the equity value of Relativity is in the “hundreds of millions” which, after Burkle’s emergency loan a few months ago, is ridiculously unlikely.
Nothing but a complete load of crap spun by Kavanaugh himself.
The real questions that should be on everyone’s minds is 1). what was the original Elliot investment amount 2). what was their total return on those assets for their investors 3). and what amount of the principal (more or less than the original investment i.e., a gain or loss of “principal”), and are they receiving after 60 to 72 months a good TVM return on the use of that money?
It would seem that if Elliot invested (a figure of $750MM US), an amount, and was selling it for less (a figure of $500MM US), there is a problem. Facts of fund investors coming up substantially short for slates like Melrose II, Gun Hill Road or others have proven it’s easy now to pick up assets on the cheap (like Cuban’s Content Partners).
So did Burkle get a sweet deal with future residuals from Relativities future ancillary-library profits?
And more importantly, why hasn’t someone come up with a plan to protect investor principal when investing in film slate funds?Oh… That’s right. Our company does just that, and has never lost a penny of our conservative client’s funds in over 20 years!
thanks for the commercial…….whoever you are!
Troy. You tell us How much was the initial investment, how much was lost? You seem to be the expert with inside knowledge, or is there other frustration which meets the screen. Is it possible that Relativity has repaid a significant portion of the initial investment and the sale price is made in good faith to resolve issues or deals which arise between businesses. After all, there is no rule that companies must do business with each other forever. I love how mad you guys get when people and companies succeed, especially, when its all likely because your jealous!
Barry Dogley… I specifically said “IF” the numbers were such that Relativity’s value was bought at a discount, it would be problematic for investors at Elliot… And moreover, that no hedge fund in the world needs to risk capital when investing in Hollywood, because there is a PROVEN” way to provide principal protection –which my company is already using. No hate here… just honest appraisals of situations in the marketplace.
FilmFinancier,
What do you mean by score one for Ryan? He lost Elliott tons of money and has been desperate to get someone to save him. Not only can he not pick a movie, he loses his investors loads of money. Burkle is simply bailing out Elliott because Burkle, just like Elliott in the beginning, cares more about having dinner with stars than making money. It’s anything but a win for Ryan considering he has been silenced since the truth of all his losing ways became public. It’s still a house of cards with sucker money to buy more time
So Ron Burkle buys a talent booking business and an investment in a film production/distribution company. And he is a close friend of Mike Ovitz, correct? There are some dots here that need some connecting.
maybe RML employees will get those christmas bonuses after all! ho ho ho!
Interesting. There’s only 4 comments. This story has ben out for hours. Normally this is when the haters POUNCE… Where r u now… Starbucks?
Isn’t this the same guy who has been trying to buy sports franchises as well, only to get turned down like a bad prom date?
Mirror mirror on the wall, who is the biggest phony in Hollywood of them all? This won’t please the Relativity blow jobbers who post here, but: 1) it has all the signs of a fire sale 2) sure looks like if Elliott had to do it over again, it wouldn’t and 3) how long does anyone think an astute, ball buster like Burkle will tolerate this self-promoting fool once he gets under the hood?
“FIRESALE” is right. Burkle LOANED relativity the money to release Immortals and charged them 18 percent interest. They should’ve just put it all on credit cards.
To quote that loveable PT Barnum, there’s a sucker born every minute and congrats to Ryan for finding another one. What has always intrigued me about these billionaires is just how poorly they are obviously represented. Didn’t anyone in his legal, financial, or bookkeeping teams really ask this man if he was serious to forge a partnership with Relativity? The answer is, of course not, as long as the checks keep coming and the legal bill gets added on. I’d like to know more about the haircut that Elliott took on their dealings with Relativity.