The founder of relativity media also served as a consultant on various small businesses and venture capitalists. Ryan Kavanaugh is also considered a multitasker.
In the 1990s, to start his self hedge funding, he had to ask him for a loan of $50000. Although his father denied the loan, Ryan Kavanaugh did not get discouraged by it. He worked on using mathematics tools to connect financial and movie projects more efficiently than any traditional Hollywood finance. Currently, relativity is considered the monte Carlo model, which is primarily designed to predict the odds of the film getting successful.
How did the first year of operation at relativity go?
Until and unless it is predicted by the model that the film would constitute a huge probability of profitability, it does not get cast. In the first year of operation at relativity, the execution of an innovative financial deal was carried by Kavanaugh at Marvel Studios, which encouraged them to create the Marvel Cinematic Universe. Various business deals for reputed companies such as Paramount, Warner Bros, Sony Pictures, and Universal Pictures create the structure of all such deals. A large variety of assets was acquired by Kavanaugh, which includes the marketing and various distribution operations of the liberal media of John Malone. It also reached its first pay deal with Netflix.
What were the strategies of Kavanaugh?
He forged marketing as well the partnership regarding production partnership. He did this with the association of Sir Richard Branson’s virgin mobile and a virgin producer whose stake is owned by relativity.
In association with Clear Channel Radio, he became a broker of marketing partnerships based on cross-platform. He was quite instrumental during the launch of relativity’s partnership with Huaxia Film Distribution Co. Ltd, which is based in China. He wanted to do this to become equal partners in Sky Land Entertainment. It was done with a private-equity firm, IDG china media, as well as SAIF partners for handling the production as well as distribution of films in China and the U.S.
The production, distribution and structure financing of approximately 200+ motion pictures is done by relativity. It also generated $17+ billion revenue which earned almost 60 nominations in Oscar. In the year 2012, he brokered a deal where Ron Burkle, who is a billionaire, would be his partner in relativity. They would together invest $800+ million in the company.