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NewsBot Date: November 8, 2005 10:05:00 AM
FRST News First Look Studios Inks Deal to Acquire Blockbuster Subsidiary, DEJ Productions; First Look Library Gains an Additional 236 Titles, Including Rights to Award-Winning Film ''Monster''
LOS ANGELES--(BUSINESS WIRE)--Nov. 8, 2005--First Look Studios (www.firstlookmedia.com), a leading independent entertainment distributor and financier in today's market, has entered into a definitive agreement to acquire all of the equity interest of DEJ Productions Inc., a wholly owned film acquisition and distribution subsidiary of BLOCKBUSTER INC. (NYSE: BBI, BBI.B). Henry Winterstern, CEO of First Look Studios (Pink Sheets:FRST), announced the deal, for approximately $25 million in cash.
In addition, Winterstern announced that First Look and Blockbuster have agreed to extend their existing revenue share agreement into a multi-year revenue sharing distribution arrangement following the completion of First Look's acquisition of DEJ. The deal was negotiated directly by Winterstern and Blockbuster. The funding for this acquisition will be provided by New York-based hedge fund, Prentice Capital, and this marks the second round of capital provided by Prentice Capital to First Look Studios since July, 2005.
DEJ Productions currently operates as an independent rights acquisition and distribution pipeline for Blockbuster retail stores, as well as other video and DVD retail outlets including Hollywood Video, Movie Gallery and Wal-Mart. Prior to this deal, First Look Studios and DEJ Productions already enjoyed a successful ongoing business relationship. In late 2004, First Look Studios President Bill Lischak and Senior VP of Home Entertainment Bill Bromiley negotiated a multi-picture subdistribution agreement for First Look to sell and distribute certain DEJ film titles on home video and DVD. Additionally, certain pictures have been jointly acquired by DEJ Productions and First Look, including the upcoming Wes Craven horror-thriller production "The Breed," directed by Nick Mastandrea.
"The acquisition of DEJ Productions marks an important step for First Look Studios," said Henry Winterstern, CEO, First Look Studios. "We are moving forward with our mission of building the next fully-integrated film production and distribution company. This acquisition also gives us important depth of assets from the standpoint of library, capital and managerial talent."
"We're very proud of what we have built and the success we've had over the seven years of DEJ's history," said Matthew Smith SVP studio relations for Blockbuster Inc. "Our subdistribution arrangement with First Look has been very successful for both parties, and we look forward to continuing our relationship with them following the closing of our sale of DEJ."
First Look Studios was formed in 2005 through the merger of First Look Media and Capital Entertainment. The merger combined each company's unique entertainment assets to create a strong independent studio platform focusing on theatrical distribution, home entertainment, film development and production and foreign sales.
About First Look Studios
First Look Studios (www.firstlookmedia.com) is a leading independent entertainment distributor and financier with four key operating divisions (First Look Pictures - the U.S. theatrical releasing operation; First Look Home Entertainment - the U.S. video and DVD distribution operation; and First Look International - the company's foreign sales operation and First Look Media - a branded entertainment arm). The Company is headquartered in Los Angeles.
