First Look Studios is buying Blockbuster Entertainment inhouse production, acquisition and distribution company DEJ Prods. for $25 million in cash.
First Look Studios, formed earlier this year with the merger of First Look Media and Capital Entertainment, will get the 225 films in the DEJ library and has agreed to a multiyear revenue-sharing deal with Blockbuster. First Look has been distributing DEJ titles under a multipic joint-venture arrangement since late 2004.
First Look CEO Henry Winterstern negotiated the deal with Blockbuster head of strategic planning Frank Paci. Funding was provided to First Look Studios for the second time since July by New York-based hedge fund Prentice Capital.
“The acquisition of DEJ marks an important step for First Look Studios,” Winterstern said. “We are moving forward with our mission of building the next fully integrated film production and distribution company.”
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DEJ, launched in 1998 and named after the first initials of three top Blockbuster execs at the time, Dean Wilson, Ed Stead and CEO John Antioco, was initially formed to acquire and co-finance indie and DVD movies for exclusive release in Blockbuster stores. The company quickly became one of the biggest buyers at film festivals like Sundance and released several dozen titles each year.
DEJ quickly ended its exclusive distribution to Blockbuster and began distributing to all retailers. It also evolved under Andy Reimer into a production house and began co-financing bigger films for theatrical release, such as “Crash” and “Monster.”
Reimer, who joins First Look along with DEJ exec Steve Break, said recently that DEJ has been decreasing its volume of releases to 25-30 titles per year but increasing the quality of each production. Recent DVD movies include three since May that star Ving Rhames: “Back in the Day” (DEJ’s first major self-produced film); “Animal”; and the Dec. 27 release “Shooting Gallery,” which co-stars Freddie Prinze Jr.
Among DEJ productions for 2006 are “Slow Burn,” with Ray Liotta, LL Cool J, Taye Diggs, Mekhi Phifer and Jolene Blalock, and DVD premiere sequel “The Prince and Me 2,” most likely timed for release near Valentine’s Day.
The joint-distribution venture negotiated in 2004 by First Look Studios prexy Bill Lischak and senior veep of home entertainment Bill Bromiley, included jointly acquired movies, such as the upcoming Wes Craven horror-thriller production “The Breed,” directed by Nick Mastandrea.