Film and television post-production house Todd-AO has reported reduced first-quarter profits of $1 million compared with $2.1 million a year ago on revenues of $33.5 million vs. $33.9 million a year earlier.
The Los Angeles-based company is attributing the losses, for the period ended Nov. 30, to expenses incurred in connection with its pending acquisition by Liberty Media and reduced activity in its L.A. sound studios.
Liberty Media’s acquisition of Todd-AO moved further along last week after both companies inked a definitive agreement to pair up, resulting in an immediate reclassification of Todd-AO stock. The companies filed a letter of intent last July.
In the transaction, Todd-AO will be merged with a newly formed entity. In that merger, shares of the new Todd-AO will be converted into a new publicly traded common stock.