Earlier this year, after racking up $1.2 billion in debt, television and film studio Relativity Media declared bankruptcy. The studio has gone through a massive struggle since it filed for bankruptcy protection back in July, but something has finally emerged from the debris – Relativity Television.
Like many media companies, Relativity Media consists of a variety of divisions. The list includes:
• Relativity Sports
• Relativity Television
• Relativity Music
• Relativity International
• Relativity Digital
• Relativity School
• Madvine (Brand Agency)
While the bankruptcy battle still rages, Relativity Television has essentially been acquired Anchorage Capital, Luxor Capital and Falcon Investment Advisors – the three largest debtholders who were owed $360 million according to a recent report by Variety.
Relativity’s $125 million television assets don’t exactly make up for the loss, but the television division was one of the few to consistently remain profitable. The division churns out a number of series for a variety of networks, including MTV, Food Network, FYI, ABC Family, Oxygen and most recently CBS. Limitless, the division’s newest series based on the 2011 Relativity-owned movie of the same name, hasn’t seen a massive amount of positive feedback but it hasn’t necessarily flopped either.
The new company, which isn’t likely to remain named Relativity Television for long, is already moving forward. It’s set to receive $75 million in capital in order to jumpstart its production efforts.
The only thing being kept are the old executives, CEO Tom Forman and now president and chief operating officer Andrew Marcus. The investors have assured both that they intend for the new television company to become a long term investment. The studio is currently hunting for TV industry veterans who have experience building companies from the ground up.
In the same report from Variety, Forman said, “This is the best possible outcome in that we get to continue working with a team of people we know and trust, we get to make shows that we’re incredibly proud of and we’ve got a lot of wind in our sails from new owners.”
Relativity Television continued to sell pilots and keep its production promises even throughout the bankruptcy proceedings.
Meanwhile, Relativity Media founder Ryan Kavanaugh and various investors are still trying to work out a deal to buy back the rest of Relativity Media.
Relativity’s bankruptcy battle has been an especially long and grueling affair, made even worse by its highly publicized nature. Back in August Kavanaugh finally broke his silence about the affair in a tell-all interview with The Hollywood Reporter. When asked how Relativity went from reportedly talking about an IPO to bankruptcy, Kavanaugh said, “We were in talks with a number of investors. We had turned some of those talks into firm, binding, committed deals. The deals, like the $350 million deal with VII Peaks, were actually thwarted and/or stolen by a board member and paid adviser who saw a different plan for themselves to line their own pockets and hurt everybody else in the company.”
Only time will tell how and if Kavanaugh and his group of investors will succeed at wrestling back Relativity from its precipice of ruin.