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Chernin Entertainment eying more production studios

Kerry Flynn
Apr 1, 2022
Illustration of a television with $100 bill on the TV screen

Illustration: Eniola Odetunde/Axios

Chernin Entertainment has explored buying other TV and film production companies such as Red Arrow Studios, per The Information and Bloomberg.

Why it's the BFD: Dealmaking is rampant in Hollywood as the rise of streaming increases the demand for content.

The big picture: Several studios have been bought or received new financing over the past year.

Details: Chernin reportedly hired Centerview Partners and Moelis & Company last year to explore options, which included selling a minority stake to Carlyle.

  • But Chernin has since focused on buying a studio. Red Arrow Studios is a network of international production companies. Its work includes the popular reality dating show "Love is Blind" on Netflix.
  • Bloomberg reports that Chernin is profitable; had $50 million in earnings before interest, tax, depreciation and amortization; and is seeking a chief financial officer.

Catch up quick: Chernin has produced popular films like "Ford v Ferrari," "Hidden Figures" and the "Planet of the Apes" trilogy and TV series like "New Girl" and "See." It signed a non-exclusive first look film producing deal with Netflix in 2020.

The bottom line: "Because streaming services want to buy out so many of the rights to projects ahead of time, they guarantee a profit for the producer. That makes the earnings more predictable than in the hit-driven movie business of the past." — Lucas Shaw, Bloomberg

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