×
You will be redirected back to your article in seconds

Reitman, Pollock settle U dispute

Montecito gets back PFE percentage

Ivan Reitman and Tom Pollock’s Montecito Picture Co. has settled its dispute with Universal Pictures.

Under the terms of the agreement, which was expected (Daily Variety, Feb. 17), Reitman and Pollock have acquired Polygram Filmed Entertainment’s one-third interest in Montecito, making the filmmakers equal partners in the company. (U acquired PFE last year.)

Montecito, which despite published reports will not be transferring its production deal to Universal, also retains ownership of its 16 film development projects.

Matching funds

Montecito originally pacted with PFE in February 1998 to make three-five films a year. Montecito had raised $300 million of its own financing from Citibank, which PFE pledged to match.

That arrangement ran into trouble when U acquired PFE, as part of its $10.26 billion Polygram Holdings acquisition, before the PFE/Montecito deal was closed. Although U kept funding Montecito’s overhead through the beginning of this year, the studio felt that ponying up the $300 million didn’t necessarily make good business sense.

Neither Reitman nor Pollock would comment on the terms of the settlement, but it is understood that Universal has transferred PFE’s 33% stake in Montecito to the two partners and paid them a lump sum in compensation, which they will use to help capitalize the company. While the size of the settlement was not disclosed, it is thought to run into the tens of millions, enough to keep Montecito in business.

Needs new financing, distrib

Montecito’s Citibank facility has now fallen through, and Pollock said that he and Reitman would work to set up a new arrangement, as well as a new studio distribution deal.

“I am delighted that we have worked this matter out with Polygram and Universal to our mutual satisfaction,” Pollock said. “Our company leaves with sufficient capitalization to complete its development program and to establish itself as an independent production company.”

One of the ironies of the contention between Montecito and U was that Pollock is a former vice chairman of Universal Pictures. Reitman’s former entity, Northern Lights Entertainment, also previously had a production deal with U.

Montecito was repped by attorney Bert Fields in the negotiations.

More Film

  • Noah CentineoNickelodeon Kids' Choice Awards, Show,

    Kids’ Choice Awards 2019: JoJo Siwa, Noah Centineo Take on Bullying

    This year’s Nickelodeon Kids’ Choice Awards was full of positivity and encouragement to be yourself. DJ Khaled, known for his upbeat mantras, hosted the 32nd annual awards ceremony alongside JoJo Siwa at USC’s Galen center. Siwa accepted the award for favorite social music star. Siwa said in her acceptance speech, “I get hated on every [...]

  • Us Scriptwriter and Film-maker Larry Cohen

    Larry Cohen, Cult Horror Writer-Director of 'It's Alive,' Dies at 77

    Larry Cohen, best known for his work as a B-movie producer and director in the ’70s and his later work in screenwriting, has died. He was 77. Cohen’s friend, actor and publicist Shade Rupe, confirmed the news, which was announced in a post to Cohen’s official Facebook page. Rupe said Cohen died in Los Angeles [...]

  • Captain Marvel

    Box Office: 'Captain Marvel' Shatters $900 Million Milestone

    Brie Larson’s “Captain Marvel” continues to do heroic business. In its latest box office milestone, the female-fronted superhero tentpole zoomed past $900 million in ticket sales worldwide. “Captain Marvel” brought in a mighty $87 million globally this weekend, including $52 million from international territories. It has now generated $589 million overseas for a global haul [...]

  • Us - Lupita Nyong’o - cr:

    Box Office: Jordan Peele's 'Us' Stuns With $70 Million Opening Weekend

    Talk about scary good. Universal’s “Us,” the second directorial effort from Jordan Peele, pulled off a stunning debut, generating $70 million from 3,741 North American locations. That haul is enough to land it the second-best opening weekend of the year behind Disney’s “Captain Marvel” ($153 million). The psychological thriller about a family confronted by a [...]

  • SHAZAM

    Film Review: 'Shazam!'

    In “Shazam!,” Zachary Levi brings off something so winning it’s irresistible. He plays a square-jawed, rippling-muscled man of might, with a cheesy Day-Glo lighting bolt affixed to his chest, who projects an insanely wholesome and old-fashioned idea of what a superhero can be. But he’s also playing a breathless teenage kid on the inside, and [...]

More From Our Brands

Access exclusive content