Written by: FFT Webmaster | November 29th, 2011
The web information service THE WRAP has broken the story that just weeks before the release of his first big-budget epic, the sand-and-sandal epic IMMORTALS, Relativity Media CEO Ryan Kavanaugh took a $200 million loan from billionaire Ron Burkle, The loan was obtained from Colbeck Capital Management, a fund in which Burkle has invested. The money was needed to help Relativity cover the staggeringly high multi-million marketing costs for the film, and also provided the company with seed capital to continue making big budget movies, including the upcoming Snow White epic MIRROR, MIRROR. Apparently, the terms of the short term loan were quite onerous, with an 15 percent interest rate and a guarantee that Colbeck would receive “first dollar gross,” meaning cash direct from box office receipts .At a cost of around $85 million, IMMORTALS has so far taken in $69 million domestically since its Nov. 11 release, and is on track to be a modest moneymaker for the studio as the film moves into international territories. Rumors have been rampant in Hollywood for months that Burkle is circling a JP Morgan deal to buy out Elliott Management’s minority interest in Relativity. The investment bank has been quietly negotiating with Relativity for months to lead a $700 million investment in the company but the deal has not yet closed.