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Horror Imprint Rogue Pictures May Be Dumped by Universal
21-Oct-2008
Written by: Mic Mell
Universal Pictures is in negotiations to sell its horror arm to Relativity Media.
These days, it seems more companies find the answer to a money crunch to be selling off divisions, especially in entertainment. Universal Pictures is discussing terms with Relativity Media LLC for Rogue Pictures, maker of horror and action films.
The Associated Press reports that the deal could be worth as much as $150 million for Universal. While Universal will continue to distribute the films, Rogue's entire catalog, upcoming projects, and brands will belong to Relativity Media. Relativity is a business partner and major backer for Universal, and they are planning to invest billions to help Universal fund production through 2015. The move is a step for Relativity to become a larger player in the movie making industry.
The news comes in the wake of Universal CEO Jeff Zucker's announcement that the budget for 2009 will be slashed by over $500 million. The AP reports that someone very close to the deal says negotiations have been ongoing for months.
For Universal, the situation is lucrative. They will keep a cut for distribution, and distributors normally get their cost back before profits are divided. The deal also eliminates the financial risk of a box office failure.
Rogue Pictures, which has released hits like Shaun of the Dead, Fearless, and Unleashed, has some big plans for 2009, no matter who owns them. They are planning to release four films, including a Wes Craven film.
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