Legendary Entertainment, the studio behind “Dune,”On Monday, Apollo announced that it was selling a stake in the equity stake worth $760 Million to the company.
Legendary’s most profitable year, 2021, was the reason for the minority investment. “Dune”And “Godzilla vs. Kong.”
Legendary will regain control over its operations and creativity from China-based Dailan Wanda.
“Legendary is known for its world-class content and franchise features and has strong relationships with top studios and streaming platforms alike. In making this fund investment, we were excited by the velocity in their television and film business, the strong management team and the massive secular tailwinds driving the industry. Already, Legendary generates significant free cash flow that’s reinvested in high-growth categories, and we also see compelling M&A opportunities ahead. We view Legendary as a platform for potential follow-on investments and are excited to support Josh, Mary, Chris, Ron and the rest of the Legendary team,”Apollo Private Equity Partners Aaron Sobel & Lee Solomon released a statement.
“We are excited to welcome Apollo as a new shareholder in Legendary and equally important as a thought partner in our business. This fund investment from Apollo validates our success to-date and invigorates our growth plans with a strategic capital partner who shares our goal to grow the business. The creative leadership of Mary Parent combined with our commitment to make culturally relevant, entertaining content allows us to continue to build on this success now with the support of Apollo as well as our partners at Wanda,”Joshua Grode was a legendary CEO.
Legendary has been a key player in the movie industry, as theaters have struggled with getting audiences back into seats after being closed for over a year due the COVID-19 epidemic. This film was released as part of its production partnership. “Godzilla vs. Kong”It was the first major blockbuster in theaters in 2021. Thousands of theaters across the U.S. scheduled reopenings around the film. The film made $467.8 million in worldwide box office, which is higher than the total for The Avengers. $386 millionGrossed by “Godzilla: King of the Monsters”2019
“Dune,”Warner Bros.’ hit film is proving to be a success on streaming and in theaters. The movie helped drive HBO Max subscriptions up to more than 73,000,000, and just under $400 million global. Legendary Productions is producing the film, which is expected to win an Oscar. “Dune: Part Two”Released in 2023
Apollo, meanwhile, becomes the latest private equity firm to make a heavy investment in the entertainment industry; joining the likes of RedBird Capital, which bought a stake in LeBron James’ SpringHill Company; and Blackstone, which has funded the recent acquisition of Reese Witherspoon’s Hello Sunshine by nascent media venture Candle Media, run by former Disney execs Kevin Mayer and Tom Staggs.
LionTree was the financial advisor to the Apollo Funds during the transaction. Moelis & Company served as lead financial advisor to Legendary, and Paul Weiss and Stroock served as legal counsel
More to come…