Relativity Media Buys Overture Films From Cable Billionaire John Malone

Relativity Media LLC, Ryan Kavanaugh’s film finance and production company, agreed to take over the marketing and distribution operations of Liberty Media Corp.’s Starz Overture Films.

Kavanaugh’s company, which bought Rogue Pictures from NBC Universal last year, plans to hire two-thirds of Overture’s staff, about 45 people, Relativity said today in an e-mailed statement. Financial terms weren’t disclosed.

The agreement marks an exit from feature films by Starz, part of the Liberty Media empire controlled by cable television billionaire John Malone. Starz, led by President and CEO Chris Albrecht, operates premium cable television channels and produces its own programming.

Among those joining West Hollywood, California-based Relativity will be Overture’s top marketing and distribution executive, Peter Adee, as well as Kyle Davies, Overture’s executive vice-president of theatrical distribution.

Overture will release its remaining titles -- “Jack Goes Boating,” “Stone” and “Let Me In” -- through a distribution services agreement with Relativity, the companies said.

Closely held Relativity announced on July 6 an accord to offer as many as 30 films to subscribers of Netflix Inc., the mail-order and Internet film service, at the same time premium cable channels show the movies.

“As we’ve been expanding this area of our business, finding a team with the experience and breadth and depth that Peter and Kyle’s have couldn’t have been more perfect fit,” Kavanaugh, Relativity’s CEO, said in the statement.

Liberty Capital, the Liberty Media tracking stock that includes the Starz assets, rose $1.26, or 2.8 percent, to $46.57 at 4 p.m. New York time in Nasdaq Stock Market trading. Shares of the Englewood, Colorado-based company have gained 95 percent this year.

To contact the reporter on this story: Ron Grover in Los Angeles at Rgrover5@bloomberg.net;

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