Beer takes over Propaganda talent
Transaction to value at $10 - $15 mil
Backed by the SCP Private Equity Partners investment fund, Beer will form a new company to manage the assets, Propaganda Film Holdings.
Beer has been circling Propaganda for some time (Daily Variety, March 10). His transaction, which is thought to value Propaganda at $10 million-$15 million, does not include the company's feature film division, which U parent Seagram sold to Barry Diller's USA Networks Thursday (Daily Variety, April 8).
The deal was engineered for U by its new senior vice president of corporate development and strategic planning, Rick Finkelstein. He joined the studio from Polygram Filmed Entertainment last month, reporting to Brian Mulligan, exec VP of finance and operations.
Originally owned by PFE, Propaganda fell into the Universal camp following Seagram's acquisition of Polygram Holdings last year.
"This sale recognizes the value of Propaganda's nonfeature film assets and is consistent with Universal's objective in focusing on its core movie business," Finkelstein said.
According to a statement issued by Beer, he and his group plan to build on Propaganda's brand name in the talent management, commercials and musicvid worlds.
In terms of talent management, Propaganda's clout grew last month when it merged its business with that of manager Marc Epstein, who brought in such clients as Nicole Kidman and Rupert Everett.
Beer's attitude as to whether Propaganda would remain in the feature biz was more ambiguous: "Propaganda Films will retain its name and certain projects and deal commitments that are currently in place for its roster of commercial and musicvideo directors," the statement said. "Management will continue to develop opportunities for ... actors and directors to create film, television and other content in conjunction with studios and independent production companies."
Propaganda's production deals include directors Jane Campion, David Fincher and Forest Whitaker as well as actor-producer Jason Patric. Most of these will move with the feature division to USA Films. Commercials and musicvid helmers that want to make feature pics, such as Spike Jonze ("Being John Malkovich'), will probably remain with Propaganda.
Beer added that he was "committed to supporting the current management at Propaganda," although "changes were expected in the feature film division as a result of the sale of its assets to Universal." Propaganda is currently headed by chairman Steve Golin, who could not be reached for comment.
Beer is a former manager of the Sundance Film Festival and a co-founder of the Sundance group of companies, incorporating the Sundance Channel and Sundance Cinema Circuit. SCP Private Equity Partners is a private equity fund with holdings in communications, IT and Internet companies.
