L.A.-based postproduction house Point.360 has agreed to acquire Modern VideoFilm, the troubled post house whose day-to-day operations were taken over by the giant Deloitte Corporate Restructuring Group in October.
“Modern VideoFilm has entered into a preliminary agreement to become part of Point.360,” the companies said in a statement Friday. “Once the transaction is complete, the combined company will form one of the industry’s largest independent providers of postproduction services, with an established client base comprising major studios, broadcast networks, cable outlets, streaming media companies, independent producers and others.”
Calling the takeover a “strong marriage,” Modern VideoFilm CEO Scott Avila said, “The combined entity will offer our clients a broader range of solutions.”
Avila took control of Modern VideoFilm last fall after Moshe Barkat, the company’s founder, president and CEO, was ousted by its board of directors along with his No. 2, CFO Hugh Miller. Avila is a principal of Deloitte CRG, which specializes in reorganizing troubled companies and then selling them off.
With facilities in Los Angeles and Burbank, Point.360 provides a wide range of postproduction services, including closed captioning and subtitling, editing, encoding and transcoding, mastering, restoration, scanning, vaulting and worldwide physical and digital distribution.
“In conjunction with recent improvements in our operating performance, this transaction gives us an opportunity to further enhance our product offering and financial capabilities for future opportunities,” said Point.360 Chairman and CEO Haig Bagerdjian.
Modern VideoFilm has provided postproduction and distribution services to the film and TV industry for more than 33 years, working on many high-profile film and TV shows including Avatar, Modern Family, Game Of Thrones, The Walking Dead, Sons Of Anarchy, House Of Cards, Falling Skies, How I Met Your Mother, The Grand Budapest Hotel, There Will Be Blood and Best Picture Oscar winner Slumdog Millionaire.
The companies said that under the terms of a nonbinding letter of intent, Point.360 will issue convertible preferred stock in exchange for substantially all of the assets of Modern VideoFilm. Pursuant to the nonbinding term sheet, Point.360 and Modern VideoFilm must reach mutually acceptable, definitive agreements executed by both companies. “There can be no assurance, however, that the parties will enter into definitive agreements with respect to the proposed transaction,” they said in a joint statement.