MUMBAI: Relativity Media and Elliott Management Corporation in a joint decision have spun 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 Relativity Media CEO 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.
“This move allows Relativity to focus on producing and distributing its own home-grown product," said Elliott Media Investments president Michael Joe.
Joe was recently installed in his new position pursuant to a joint decision by Elliott and Relativity.