Relativity Media facts for kids
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| Genre | Independent films |
| Founded | May 18, 2004 |
| Founders | Lynwood Spinks Ryan Kavanaugh |
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United States
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| Owner | UltraV Holdings |
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Number of employees
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Approximately 350 (2013) |
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Relativity Media, LLC is an American company that makes and distributes movies. It was started in 2004 by Lynwood Spinks and Ryan Kavanaugh. The company first helped other film studios get money for their movies. Later, it began making its own films and getting involved in other entertainment projects.
The company had a lot of success for a while. However, in 2015, Relativity Media had to file for bankruptcy. This happened again in 2018. Today, the studio is owned by UltraV Holdings.
Contents
How Relativity Media Started and Grew
Early Days: Helping Movies Get Money
Relativity Media was founded in 2004 by Ryan Kavanaugh and Lynwood Spinks. Kavanaugh convinced Spinks to invest $1 million to start the company. At first, Relativity Media acted like a middleman. They helped connect film studios with banks and other companies that had money. This money was used to fund many movies at once.
In the early 2000s, Hollywood studios needed more ways to get money for films. Relativity Media stepped in to help. They arranged funding for big studios like Warner Bros., Universal Pictures, and Sony Pictures. For each movie, Relativity earned money and a fee. Kavanaugh also got a special credit as an executive producer.
Expanding into Film Production
In 2008, a company called Elliott Management bought a large part of Relativity Media. This deal gave Relativity about $1 billion to use. With more money, Relativity could get more involved in making movies.
In 2009, Relativity made a deal with Lionsgate. They also bought Rogue Pictures from Universal Studios for $150 million. In 2010, Relativity made a deal with Netflix. This allowed movies owned by Relativity Media to be streamed on Netflix. They also bought the distribution and marketing parts of Overture Films.
With Elliott Management's support, Relativity Media started its own studio. They began producing and distributing their own films. Their first movie was released on December 3, 2010.
Challenges and New Partnerships
In 2011, Elliott Management stopped providing money to Relativity. This happened because their investments were not doing well. Relativity then got a large loan from Ronald Burkle to help with marketing costs for movies like Immortals. In 2012, Burkle became a shareholder, investing more money.
In May 2012, Relativity announced new debt financing. Elliott Management then left its investment in the company. Relativity also made deals to co-produce and co-finance movies with EuropaCorp and Atlas Entertainment.
In July 2012, Relativity combined its sports agencies into Relativity Sports. This new division represented over 400 athletes. In 2013, Relativity also partnered to create a film and performing arts school called Relativity School.
However, many of the studio's movies did not do well at the box office. The financial deals Relativity made for investors also did not turn out well.
Relativity Media's Bankruptcies
First Bankruptcy in 2015
In July 2015, Relativity Media filed for Chapter 11 bankruptcy. This means the company needed legal protection while it reorganized its finances. The company had many unpaid debts. The Hollywood Reporter called it one of the most famous Hollywood bankruptcies ever. The company spent nearly eight months reorganizing in court.
Because of the bankruptcy, Relativity Media had to sell off many movies they had acquired. These included films like Suffragette, Jane Got a Gun, and The Space Between Us. These movies were sold to other film companies.
Rebuilding and Second Bankruptcy
On January 6, 2016, Relativity Media acquired Trigger Street Productions. The owners, Kevin Spacey and Dana Brunetti, were given important roles at Relativity Studios. However, Kevin Spacey later decided not to take the offer.
On January 26, 2016, Relativity Television, the company's TV division, became a separate company called Critical Content. On March 18, 2016, Relativity Media officially came out of bankruptcy.
In September 2016, the company launched R2 Entertainment. This new company focuses on distributing smaller films with budgets under $15 million.
In October 2016, Ryan Kavanaugh announced he was selling Relativity to a company called YuuZoo. However, YuuZoo canceled the deal in March 2017.
In May 2018, Relativity Media filed for bankruptcy again. The company planned to sell all its assets. The U.S. Trustee's office raised concerns about this second bankruptcy. They worried it might benefit only a few people, not all creditors.
In June 2018, Netflix sued Relativity Media. Netflix claimed Relativity broke an agreement by giving five exclusive films to other companies like Amazon and Starz. Netflix also said Relativity did not provide the number of films they promised.
In August 2018, the U.S. Bankruptcy court approved the sale of Relativity Media to UltraV Holdings.
In 2020, Lex Miron, the new CEO of Relativity Media, announced that Come Away would be the first movie released by the "new Relativity Media." Miron said the company's future plan is to focus on making smaller to mid-budget films.
Filmography
- List of Relativity Media films
