What They Say
Technicolor is to split in two and spin-off its Creative Studios business. Technicolor Creative Studios (TCS) will be split off with shares issue to Technicolor shareholders, with the remaining business listed on the Euronext Paris market. The remaining company will hold 35% of TCS. The TCS business is described as a a ‘pure play’ equity story in a market undergoing “exponential growth”.
The company may dispose of its shares in TCS when conditions are favourable.
Technicolor, which is reported to be a market leader in the supply of Android TV set-top boxes, will be led by current connected home chief Luis Martinez Amago as CEO, with Richard Moat, the current CEO, becoming chairman. Its two businesses will be Connected Home and DVD Services which provides replication, packaging and supply chain solutions for packaged media and related products for across film, TV, games and music industries.
The company has also received an offer to sell its trademark licensing business for around €100 million in cash according to DTVE.
The firm will refinance its debt.
Variety reported that the MPC division within TCS has been involved in “Top: Gun Maverick” and Disney’s live-action “The Little Mermaid,” as well as on Steven Spielberg’s “West Side Story,” “The One and Only Ivan,” “1917,” “Ghostbusters: Afterlife,” “Cruella,” “The Martian” and “Guardians of the Galaxy”.
What We Think
It probably makes sense to let TCS be seen as a pure play production company. (BR)
