Is Village Roadshow about to take a major detour?
The longstanding content co-financier and co-producer is suffering cash flow issues, multiple sources told Variety, forcing the shop into bad standing with the Writer’s Guild of America and inspiring whispers about its viability in show business.
Majority owned by Vine Alternative Investments, the company behind valuable library titles like “Joker”.
“The Matrix” and Steven Soderbergh’s “Ocean’s” franchise got a shot in the arm in 2018 when well-liked industry vet Steve Mosko took over operations. Rebranded as Village Roadshow Entertainment Group, Vine’s cash kicked off a renewed sense of purpose internally – and ginned up its relationship with Warner Bros. Pictures.
But after major market contractions due to the 2023 Hollywood labor strikes, the struggle seems to be real for VREG. The firm has outstanding payments owed to union writers on its projects, and “a stop work order is imminent if they do not do what’s necessary,” a spokesperson for the WGA told Variety.
Specific writers and projects outstanding were not immediately clear. Sources close to VREG said the company remains afloat, but three individuals attributed the IOU to liquidity problems at Vine Investments. In July, Vine completed a massive sale of some of its legacy entertainment assets — a parcel that includes the song catalogue of hitmaker Calvin Harris — to Shamrock Capital in deal worth a reported $2.4 billion.
Two individuals familiar with the company said multiple suitors have been in discussions to acquire Vine’s stake in VREG as a whole. One of the sources maintained that the deal was not a “fire sale,” and potential buyers are interested in maximizing the 100-plus library titles and the creative talent in place.
A Village Roadshow Entertainment Group spokesperson had no comment on the matter. A spokesperson for Vine did not immediately return Variety’s request for comment.
In October, reports said VREG had laid off a small number of staffers, mostly middle management. Variety has confirmed that others have left since, but major department leads remain, including heads of film and scripted and unscripted television. Word all over town through the Thanksgiving holiday said Mosko might cut his losses, but sources said the executive will remain in place to serve his team and their development slate.
VREG also remains locked in a contentious arbitration battle with Warner Bros. over the concurrent release of “The Matrix Resurrections.” That film, and numerous other high-profile titles, were pushed on streaming the same day as theatrical release in 2021 thanks to the COVID-19 pandemic. While one source said the legal action is ongoing, the litigation is not creating any prohibitive financial distress for VREG.
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