Relativity TV spun off with Forman

Relativity Media’s TV operation has emerged from bankruptcy proceedings with a US$75m pot for expansion and the division’s old CEO still onboard.

Tom Forman

Investment firms including Anchorage Capital, Luxor Capital and Falcon Investment Advisors were among the hedge funds to contribute to the purchase of the profitable TV arm. CEO Tom Forman is now back in charge and signed to multiyear deal.

Andrew Marcus, previously MD, has a similar deal and becomes president and chief operating officer. The firm, now an independent entity without debt, will continue to focus on scripted and unscripted series and is planning to rebrand itself.

The deal will also give Relativity Television US$75m to expand the business via acquisitions, with overall deals and staff additions also on the agenda. No job losses from the TV division are expected.

Founded in 2008, Relativity’s TV division has more than 29 series in production, including Tia Mowry at Home and Showtime’s Gigolos with an additional 46 projects lined up. The unit is also behind forthcoming CBS series Limitless and MTV’s Catfish.

Forman said the deal was the start of a “new chapter as an independent, well-capitalised business that is extremely well positioned to achieve both near-term growth and long-term success.

“We’re fully independent of our former parent company in an era of increasing media consolidation and much more nimble and flexible as a result.”

The hedge funds haven taken on the TV division, worth around US$125m, having been owed more than US$360m by Relativity.

The company, which filed for bankruptcy protection towards the end of July, will now be reorganised around the remaining assets, primarily its movie arm. Founder Ryan Kavanaugh could regain control of the rest of the firm and is developing a refinancing plan for the company.