As WGA Looks to Sanction Late-Paying Village Roadshow, Questions Emerge About Studio’s Survival

by

As a seasoned cinephile who has witnessed the ebb and flow of Tinseltown’s tide, I must admit that the news about Village Roadshow Entertainment Group (VREG) gives me a sense of déjà vu. The company’s financial struggles, coupled with its strained relationship with the Writer’s Guild of America, have sent ripples through the industry, and it seems we may be witnessing another chapter in Hollywood’s long-running saga of creative enterprises facing turbulent waters.

Is Village Roadshow about to take a major detour?

For quite some time, the joint financier and producer of content has been facing financial liquidity problems according to several reports to EbMaster. This situation has led them to a precarious position with the Writers’ Guild of America, and there are rumors swirling about their sustainability in the entertainment industry.

The company, which is primarily owned by Vine Alternative Investments, is known for owning valuable library titles such as “Joker”, “The Matrix”, and the Steven Soderbergh-directed “Ocean’s” franchise. In 2018, the company saw a boost in operations when experienced industry professional Steve Mosko took charge. The company was later rebranded as Village Roadshow Entertainment Group, and Vine’s financial support sparked a renewed sense of purpose within the company, and strengthened its ties with Warner Bros. Pictures.

Following the significant market downturn caused by the 2023 Hollywood labor disputes, VREG appears to be grappling with difficulties. The company has yet-to-be-paid dues to union writers on their projects, and a work stoppage order is impending if they don’t take appropriate action, as stated by a representative from the WGA to EbMaster.

It wasn’t immediately apparent which specific writers or projects were exceptional, but sources close to VREG revealed that the company is managing to stay afloat. However, three individuals linked the IOU (Indebtedness) to cash flow issues at Vine Investments. In July, Vine successfully sold a significant portion of its older entertainment assets, which included Calvin Harris’ song catalog, to Shamrock Capital in a deal estimated to be worth $2.4 billion.

Two people who know the company have indicated that several parties have been engaged in talks to purchase Vine’s entire stake in VREG. One of these sources emphasized that the deal is not a hasty or distressed sale, but rather, potential buyers are drawn to the opportunity to enhance the value of over 100 library titles and the creative team already established within VREG.

A representative from Village Roadshow Entertainment Group declined to comment on the issue, while a representative from Vine has yet to respond to our inquiry for a statement.

As for me, I can confirm that in October, it was reported that VREG let go of a few staff members, primarily from the middle management level. Since then, additional departures have been noted, but key department leaders such as those overseeing film and both scripted and unscripted television remain. Over the Thanksgiving break, there were whispers around town suggesting Mosko might decide to move on, but reliable sources have assured us that he will stay put, continuing to support his team and their project pipeline.

VREG continues to be embroiled in a heated dispute with Warner Bros. regarding the simultaneous release of “The Matrix Resurrections.” Due to the COVID-19 pandemic, several high-profile films, including this one, were made available on streaming platforms and in cinemas on the same day in 2021. Although legal proceedings are still underway, it’s not causing any crippling financial problems for VREG.

Read More

2024-12-13 01:47