In addition to top-level transactions like the pending combination of WarnerMedia and Discovery and Amazon’s nearly $9 billion purchase of MGM, companies like Reese Witherspoon’s Hello Sunshine and LeBron James’ SpringHill Entertainment have reportedly been eyed for purchase. Last week,
Variety reported that indie film and TV studio A24
explored a merger or outright sale to the tune of more than $2.5 billion in the past 18 months.
Imagine’s valuation seems low against those lofty numbers for a company with a nearly 40-year track record of production. A source close to the situation described Imagine’s valuation as “realistic” rather than “off the charts” like the floated price tags for Hello Sunshine and SpringHill.
In 2016,
the company received a $100 million capital influx from Raine Group, which allowed Imagine to expand considerably with new divisions for kids and family content, documentaries and non-fiction, international and live theater projects. While Imagine does not have an in-house theatrical distribution mechanism, the company does boast a consistent library revenue stream thanks to some of its legacy deals, another source added.
variety.com