Ryan Kavanaugh’s Relativity Media and Lionsgate are close to signing a much-rumoured distribution deal, under which Lionsgate would release four to five movies a year funded and produced by Relativity, Variety reports.
Relativity will pay the production and P&A costs for all of the films, while Lionsgate, which recently cut back on the number of movies it produces, will get to add more movies to its slate without having to pay for any of them. The studio will likely get a distribution fee for releasing the pictures, though.
The three-year deal seems similar to the pact Relativity had with MGM, which dramatically collapsed earlier this year.
Business Insider Emails & Alerts
Site highlights each day to your inbox.