Village Roadshow Entertainment Group’s film library will sell for at least $417.5 million.
U.S. Bankruptcy Judge Thomas Horan on Tuesday approved an offer from Alcon Media Group for Village Roadshow’s collection of 108 feature films, including stakes in The Matrix and Ocean’s franchises, its fledgling studio business and ownership of various copyrights that’ll give the buyer the rights to co-produce proven tentpoles. The stalking horse bid, which sets a price floor for the assets, will be tested at auction. Rival offers, including from Warner Bros. Discovery and investment firm Content Partners, may still surface.
Last month, Village Roadshow — once one of the most prolific behind-the-scenes financiers in Hollywood — filed for Chapter 11 bankruptcy protection. It pointed to a costly endeavor aimed at creating content in-house and the souring of its longtime partnership with Warner Bros.
Blade Runner 2049 coproducer Alcon Entertainment outbid Content Partners, which offered $365 million. The court will oversee an auction to maximize the value of Village Roadshow’s assets. The deadline to enter a bid is May 16.
There are questions surrounding the value of Village Roadshow’s film assets, which generate roughly $50 million annually. Among the reasons the company was forced to file for bankruptcy was WB’s alleged refusal to develop titles in which the financier co-owned the related rights, including Sherlock Holmes, the Ocean’s series and Ready Player One. The shift predated the filing of a breach of contract lawsuit against the studio over its decision to release 2021’s The Matrix: Resurrections simultaneously on HBO Max and in theaters during AT&T’s Project Popcorn plan. Before that feud, Village Roadshow wanted in on a TV series WB was developing based on Edge of Tomorrow but was told the project wouldn’t move forward if it didn’t relinquish its rights. The studio ended up abandoning the show.
There are also concerns surrounding the value of Village Roadshow’s studio business. Since 2018, the company has had 99 feature films and 233 television series in development. Of those, only 6 movies and 7 television shows went into production at a price tag of $47.5 million. None of them were able to turn a profit indicating sustainability of the endeavor aimed at creating content in-house.
