Revolution Studios announced today that is has received a major investment from funds managed by affiliates of Fortress Investment Group LLC (NYSE: FIG) that will recapitalize the company and position it for growth. Following the Fortress investment and buy-out of the original Revolution partners, Revolution will step up its focus on developing, producing and distributing new content for television, while continuing to exploit its library of 50 films and over 200 television episodes.
Revolution Studios was formed in 2000 by veteran film producer Joe Roth, a former chairman of Walt Disney Studios and 20th Century Fox, as a strategic partnership with Starz Entertainment, Sony Pictures and 20th Century Fox. Revolution Chief Executive Officer Vince Totino and Chief Operating Officer Scott Hemming led the development of the company’s strategic growth plan and partnership with Fortress. Totino and Hemming will continue to lead Revolution post-transaction, with a focus on growing the company with the support of Fortress. Under a multi-year deal, Roth will continue his relationship with the studio, developing television projects through a first-look deal and as a strategic advisor to the company.
“The time is right for us to expand the Revolution brand through the development of original projects as well as those that are based on the valuable intellectual property in the Revolution library,” said Totino. “With Fortress’ financial resources and industry expertise and our continued partnership with Joe Roth, we plan to grow Revolution substantially in the coming years.”
“This is an extremely attractive investment for our funds, with significant inherent value in Revolution’s library of films and an exceptional management team in place that can now focus on growth through the development of new projects in television and film,” said Fortress Managing Director Joshua Pack.
The Revolution library includes the Academy Award-winning Black Hawk Down, as well as box office hits Maid In Manhattan, Anger Management, Daddy Day Care, America’s Sweethearts, XXX, and White Chicks, among others. Most recently, Revolution Studios has developed and produced multiple syndicated television series, including Are We There Yet? for TBS and Anger Management, starring Charlie Sheen, with Lionsgate for FX, as well as Drew Carey’s Improv-A-Ganza for GSN.
“I’m excited for this next chapter for Revolution Studios and to continue doing what I love with the company: developing and producing projects,” said Roth. “Revolution is in good hands under the leadership of Vince and Scott, who will grow the company with the backing of a sophisticated investor with deep experience in the industry.”
Evolution Media Capital (EMC), a merchant bank focused on the entertainment, media, and sports industries, acted as the sell-side advisor in the transaction.
O’Melveny & Myers, LLP (OMM) served as legal advisors to Revolution together with Revolution’s General Counsel, Marla Levine, who will continue in that capacity.
About Revolution Studios
Revolution Studios was founded in 2000 by Joe Roth. Since its inception, Revolution Studios has created a library of 50 films, including Academy Award Winner Black Hawk Down, Maid in Manhattan, Anger Management and XXX, collectively earning more than $3.7 billion in box office receipts and has produced over 200 television episodes. Revolution Studios is engaged in exploiting its library of films, including developing sequels, spin-offs and other productions based thereon, and developing and producing new content for film and television.
About Fortress Investment Group
Fortress Investment Group LLC is a leading, highly diversified global investment firm with approximately $62.5 billion in assets under management as of March 31, 2014. Founded in 1998, Fortress manages assets on behalf of over 1,500 institutional clients and private investors worldwide across a range of private equity, credit, liquid hedge funds and traditional asset management strategies. Fortress is publicly traded on the New York Stock Exchange (NYSE: FIG). For additional information, please visit www.fortress.com.