Dune puts more cash into Fox
EmptyFox Filmed Entertainment has received a second infusion of cash from Dune Entertainment.
On Friday, Fox and Dune announced an extension of their financing deal that began in January, when Dune committed $325 million to be spread across 28 Fox motion pictures (HR 1/17). The extended pact calls for Dune to invest an additional $325 million in 16 additional Fox releases.
The new agreement was announced by Fox execs Dean Hallett, executive vp finance and chief financial officer, and Victoria Rossellini, executive vp production finance and business affairs, along with Steven Mnuchin and Chip Seelig of Dune Capital Partners II Lp., the managing member of Dune Entertainment.
The deal is designed to provide Fox, which retains all worldwide distribution rights to the films, with increased financial flexibility and protection for the studio's production and release slate.
"Dune's renewed commitment is a credit to the ongoing strength and consistency of Fox's record, with the company coming off its fifth consecutive record-breaking year, and we are very pleased to continue our successful collaboration with Dune Entertainment," Rossellini said.
Said Mnuchin and Seelig: "We are very pleased to extend our strategic relationship with Fox to include an additional 16 films. We continue to be strong believers in Fox's long term track record of producing quality entertainment content."
FFE encompasses the 20th Century Fox, Fox 2000, Fox Searchlight Pictures, Fox Atomic and 20th Century Fox Animation film units.
An affiliate of Dune Capital, a multibillion-dollar broad-based fund, Dune Entertainment is focused on the ownership of entertainment content.
Dresdner Kleinwort, the investment bank of Dresdner Bank AG and a member of the Allianz Group, acted as sole lead adviser, arranger and underwriter of the financing for Dune Entertainment in connection with the transaction.