Relativity Media has confirmed the Yucaipa Companies’ purchase of a significant equity stake in Ryan Kavanaugh’s mini-major.
Relativity announced the purchase in a statement released Monday. Confirmation follows news of the investment that broke Jan. 5.
“We’ve spent a lot of time analyzing the media industry and have looked at virtually every asset out there,” Yucaipa topper Ron Burkle said in the statement. “Relativity makes sense. They run their business like a business, focusing on profitability, Internal Rates of Return and the factors that many Hollywood based businesses don’t focus on … I believe together we will be able to grow the business in a manner which continues to evolve the industry and sets new benchmarks.”
Burkle purchased the stake formerly held by hedge fund Elliott Management. Elliott’s current involvement in the company has been characterized as minimal by sources familiar with the situation.
Burkle also made a loan to Relativity through fund Colbeck Capital in November.