The Film Department isn’t going public after all.
Mark Gill and Neil Sacker’s studio announced Wednesday that it has withdrawn its proposed initial public offering from the Securities Exchange Commission.
The company said it is now close to acquiring $200 million in private equity and debt that will be used to produce, acquire and domestically release five to 10 movies a year. This would include the establishment of a marketing and distribution arm.
The Film Department announced its IPO in December, but had trouble finding investors, even with share prices being nearly halved.
Separately, the Film Department made several other announcements, including the U.S. release date for Catherine Zeta-Jones romantic comedy “The Rebound,” which will be premiered on Christmas Day by the Weinstein Company.
The company, meanwhile, said it’s targeting a first-quarter 2011 release for dramedy “Earthbound” starring Kate Hudson, Gael Garcia Bernal, Whoopi Goldberg and Katy Bates.
In its release, the Film Department also said that it’s close to establishing a home entertainment distribution deal with Fox, and that its reached a pay TV deal with Showtime through Weinstein.
Healthwise, company officials added that within the last 12 months, they’ve improved the bottom line by more than $75 million, paying off more than $60 million in debt and raising $15 million in private equity.
Over the year, the company said it generated more than $85 million in revenue from its films. These have included the cop-themed action drama “Law Abiding Citizen,” which has grossed more than $120 million worldwide.
“We’re thrilled to be coming out of a very difficult period for the entire independent film business with a great deal of momentum,” said Film Department co-chair Gill, in a prepared statement. “We’re now on track to expand and to take advantage of the enormous market opportunity in U.S. distribution, which is far greater than anything I’ve seen in 25 years in this business.”
