Relativity Media and EuropaCorp announced today the companies have formed a new U.S. distribution and marketing joint venture to support both Relativity's and EuropaCorp's U.S. distribution for their respective film slates.
Under the terms of the deal, EuropaCorp will pay approximately $130 million, anticipated to be paid over a six year timeframe, for a 50 percent stake in the joint venture. Relativity will own the other 50 percent. Each company will exclusively use the services of the joint venture and will directly distribute its own films. Building upon the success of Relativity and EuropaCorp's previous co-production partnership, each company will also have the opportunity to co-produce and co-finance each other's future films under the new agreement. The joint venture will be overseen by Tucker Tooley, President of Relativity, and Christophe Lambert, CEO of EuropaCorp.
Ryan Kavanaugh, CEO of Relativity, said: "We are excited to expand our successful relationship with EuropaCorp through the formation of this joint venture. In partnership with EuropaCorp, we will be able to more fully utilize the strength of our distribution and marketing abilities, even as we continue to expand our own film production. Together we share a vision focused on producing enthralling content in a profitable fashion."
Christophe Lambert, CEO of EuropaCorp, said: "We are delighted to create this joint venture with Relativity, having already experienced the team's expertise and deep knowledge of the U.S. market. This strategic partnership is a major step forward for EuropaCorp that allows us to fully control our distribution in the U.S. and maximize the visibility for our films."
In 2010, Relativity acquired Overture Films' distribution network and operations, upon the assumption of liabilities, when Starz LLC ceased motion picture distribution. Relativity subsequently built the operation into a world-class platform capable of distributing a wide-range of films including Relativity's slate of 8-13 moderately budgeted movies per year. The joint venture will have no impact on Relativity's other business entities.
The two companies' previous relationship led to the co-production and co-financing of Luc Besson's comedic action film The Family
and 3 Days to Kill
, and the upcoming film Brick Mansions
, which Relativity is distributing in 2014. These films join Relativity's own diverse portfolio of movies slated for worldwide release in the coming year, including Earth to Echo
, Jane Got a Gun
, the currently titled Blackbird
, and acclaimed author Nicholas Sparks' The Best of Me
– his third film with Relativity.