BERLIN — German entertainment group In-Motion has cut its stake in Los Angeles-based Myriad Pictures from 100% to 30% as it reshapes its film and TV division. Move had long been rumored.
Myriad prexy Kirk D’Amico is taking a 70% share in the company he founded in 1998.
The Frankfurt-based group acquired Myriad in 2000, offering D’Amico a seat on its executive board. D’Amico vacated the board in April but remained in charge of Myriad. In-Motion’s strategy reflects the growing discontentment with the film and TV business, which has accounted for the group’s growing deficit.
In-Motion saw its net loss increase 465% to x19.99 million ($19.65 million) in the first nine months of its current financial year, with revenue was up 7% to $60 million.
Company attributed its growing losses to several factors, including the general state of the film and TV industry; fluctuations in international exchange rates between the dollar and euro, which resulted in a $7 million shortfall at the end of the period; and increased sales costs due to the first-time consolidation of Hanover-based record label and distributor SPV — which was acquired at the end of 2000.
In-Motion spokesman Fabian Schiffer said the company had expected the negative figures from its film and TV division, which alone suffered a net loss of $16.4 million (from a revenue of $23 million). Shares in the Neuer Markt-listed company saw little change Monday, holding steady at $1.81.
Company has nevertheless had recent successes with “National Lampoon’s Van Wilder” and “The Good Girl.”
The group’s music division, which also includes L.A.-based Trauma Records and a Berlin-based joint venture with Ministry of Sound, generated sales of $37 million, but recorded a $3.3 million loss, due in part to the further expansion of its label business.