The Orchard to Sell Film and TV Business to 1091 Media
The company said Thursday it has decided to divest itself of its film and television assets so it can focus on its core business of music. The Orchard Film Group, the company behind movies like The Hero with Sam Elliott, the Oscar-nominated documentary Life, Animated and American Animals, has agreed to be acquired by 1091 Media, a holding company whose management is affiliated with Dimensional Associates, a private equity firm.
The Orchard Film Group is owned by The Orchard, an asset of Sony Music Entertainment, and it made news recently when it shelved plans to distribute I Love You, Daddy, because of filmmaker Louis C.K.'s alleged sexual misconduct. The movie was sold back to the comedian and The Orchard Film Group reportedly recovered all of its costs.
The Orchard said Thursday it has decided to divest itself of its film and television assets so it can focus on its core business of music. The company's catalog includes 25,000 copyrights and contains compositions by John Denver, Rascal Flatts, Carrie Underwood and many more.
Financial terms of the deal weren't disclosed, but 1091 Media said it will soon rename The Orchard Film Group, and that it is expected to continue making investments in content and distribution technologies.
Dimensional Associates, the private equity arm of JDS Capital Management, owned The Orchard from 2003-2015, so the agreement with 1091 Media reunites The Orchard Film Group with its original ownership team.
The announcement of new ownership comes as executives from The Orchard Film Group are shopping for movies at the Sundance Film Festival.
The Orchard’s Film Division Sold To Investment Group
The Orchard Film Group has been acquired by 1091 Media, an investment group affiliated with the team of a holding company that once owned the indie distributor. Terms were not disclosed, but 1091 said it will continue operations of the film and TV business under a new name, and that it will look to invest in content and distribution with a focus on new technologies and delivery.
The announcement was made Thursday on the kickoff of the Sundance Film Festival, where The Orchard often struggled to make an impact in securing deals amid stiff competition. Recent Park City pickups included American Animals last year and the Sam Elliott-starrer The Hero in 2017.
In a press release, The Orchard said it decided to divest its film and TV division to focus on its core music operations.
1091 Media and its principals are growth investors who also lead Dimensional Associates, the private equity arm of JDS Capital Management Inc. From 2003-2015, they owned a variety of media companies through Dimensional including The Orchard.
The Orchard Film Group, the indie studio behind “Hunt for the Wilderpeople” and “Life Animated,” is being sold to 1091 Media, Variety has learned.
The studio’s new owners are an investment group affiliated with the leadership team of digital media holding company Dimensional Associates. The companies have an agreement in principle, and under the terms of deal, 1091 Media will pick up all existing operations of the Orchard’s film and TV business.
The new company will be rechristened and is expected to continue investing in content, which likely means it will be on the prowl for movies at this year’s Sundance Film Festival. The sale is taking place because the Orchard has decided to divest its film and TV division to focus its resources and investment on its core music operations. The agreement with 1091 Media reunites the film division with its original ownership team, which established the initial vision for the movie and television distribution business. In a release announcing the deal, 1091 says the new company will “pursue further opportunities in video content and distribution through new technologies and delivery.”
Financial terms of the deal were not disclosed. The Orchard’s staff is being notified of the deal on Thursday.
1091 Media’s principals are growth investors who also lead Dimensional Associates, the private equity arm of JDS Capital Management. From 2003 to 2015, they owned a variety of media companies through Dimensional, including the Orchard and Dimensional Music Publishing, which boasts a music catalog with 25,000 copyrights including compositions by Carrie Underwood, Rascal Flatts, and John Denver. The Orchard is owned by Sony Music.
The Orchard’s past film releases include “The Hero,” a drama with Sam Elliott; the horror comedy “What We Do in the Shadows;” and the Oscar-nominated documentary “Cartel Land.”
Post by The Ultimate Nullifier on Jan 25, 2019 9:25:26 GMT -6
r0b0t says: JANUARY 24, 2019 AT 4:10 PM yup they were overpaying for content that would get them pennies back on the dollar and enjoying write ups in the trades while hemorrhaging money. This is the usual outcome when a new distro outfit just pops up and thinks the strategy to get competitive content is to pay the market premier prices which most saavy vets avoid and let the new fish that don’t understand profit cancel each other out.
REPLY REPORT COMMENT Whatever says: JANUARY 24, 2019 AT 5:00 PM If only that were true. Sometimes the newbies come along and shake things up, leaving you vets a little nervous. Understandable. These guys completely know what they’re doing…would rather work with them anyway. Smart choices, good partners.