Universal Sells Rogue Pictures to Relativity

Sunday

04Jan2009

Universal Sells Rogue Pictures to Relativity

Sunday, January 4, 2009 at 10:57PM

We reported on this pending deal a while ago, and now it's official: Variety has reported the details of the new agreement between Universal Pictures and Relativity Media for the sale of Rogue Pictures.

Rogue has primarily been Universal's horror label for the past four years, scoring its biggest hit in the summer of 2008 with The Strangers. The next Rogue release is actually less than a week away; The Unborn opens next Friday. The deal will give Relativity control of 30 films in the Rogue library as well as another 30-plus currently in development, production, or post-production.

As for the financials, Universal sold Rogue for $150 million, which may seem like a steal, but the real theft was Universal essentially swapping Rogue for DreamWorks. Prior to this deal, the U agreed to a distribution deal with DreamWorks, wherein DreamWorks would pay Universal a distribution fee. For its part, Universal promised - what are the odds - $150 million to help fund future DreamWorks films if the money is needed.

And the studio also managed to keep its hand in the distribution of future Rogue releases at a discounted fee. Why this same corporation can't figure out a way to fix NBC is beyond me.

Said Relativity CEO Ryan Kavanaugh of the deal, "This purchase allows us to pair our production and finance abilities alongside Universal's extraordinary marketing and distribution team, under the umbrella of a strong and highly focused brand."

And let's give Relativity credit for taking an aggressive move here. We saw with Twilight what the right movie can do for a start-up studio, and while I'm not saying Relativity should or needs to follow that pattern, at least the pattern is there already. Could that first major hit for Relativity and Rogue come before the sequel to The Strangers? And what kind of leverage would that give Kavanaugh and company?

Colin Boyd |

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Gin Ling

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