Global Road Entertainment, making its first foray at Berlin, has told buyers and finance partners that it will put up $1 billion in production finance over the next three years as it sets out to be a new mini-studio.
Headed by Rob Friedman and backed by Donald Tang’s Tang Media Partners, the company held a closed-door meeting in Berlin on Thursday. There it touted the $1 billion figure as its commitment to building a slate of studio-level movies and TV productions.
The figure comes as Global Road plans to release 15 to 20 wide-release movies per year in the U.S. and Canada by 2020. Production budgets are expected in the $20 million to $100 million range.
The company was formed last year out of the merger of North American distributor Open Road Films and sales and finance firm IM Global. While the principals of both Open Road and IM Global have exited, Tang and Friedman plan to hold on to the key parts of both companies – Open Road’s North American distribution and IM Global’s production finance and international sales functions.
The strong production slate will help the international sales operations, headed by London-based Rodolphe Buet, to strike long-term sales and output deals with international distributors.
Friedman has indicated that Global Road had retained the financial relationships that came with the two constituent companies. He is also understood to be in advanced talks with two major international banking and financial institutions to raise the next round of funding.