Roadshow enlarging the caravan
Variety brings word today that Norman Lear with Hal Gaba, through his Act III Entertainment, and Michael Lambert, through Lambert Entertainment, have formed Crescent to invest $115 million in Village Roadshow in exchange for "50% of the main film and distribution companies making up Village Roadshow Pictures" (see article).
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Roadshow, subsidiary of an Australia entity, has a co-financing and distribution deal in place with Warner Brothers. According to Variety,
Village Roadshow and Lear-led consortium Crescent said they will jointly pursue "strategic growth opportunities" in the film biz, including expanding Roadshow's production slate and acquisitions, as well as turning out more low-budget and direct-to-video projects.However, it went on later to note that the money will be used to "repay an intercompany loan of $100 million owed to its parent company, as well as pay a $15 million dividend." It could be that this investment provides a new lease for Roadshow and opens up the entity to access external financing for its productions.
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