U.K.-based Rank Group, the publicly traded gaming and entertainment company that owns entities including Hard Rock and Deluxe, has acknowledged that it is looking to divest itself of Deluxe, which includes the stateside and international Deluxe Media and Deluxe Film operations. This would allow Rank to focus on its gaming and related services.
Meanwhile, Modern VideoFilm, a privately held Burbank-headquartered post house that caters to digital intermediate and postproduction services for feature, TV and commercial production, identified itself as a party to negotiations involving Deluxe.
Modern president Moshe Barkat told SHOOT, “We [Modern and its financial backers] made our interest in the company [Deluxe] known through a formal presentation to Rank’s representatives.” He added that the meeting took place a few weeks ago, but he did not have a timetable as far as what happens from here.
Although he declined to offer further details of the presentation, reliable sources say a cash offer has been made by Modern to buy Deluxe.
Deluxe Film includes film replication, distribution and associated services, and also includes Hollywood-based postproduction and digital intermediate services provider E-FILM. Deluxe Media includes DVD replication, distribution and associated services.
“The competitive scene has changed significantly in our business in the last few years,” Barkat explained. “You have to grow in size and scope of services to remain competitive.”
Adding lab services and replication to its repertoire, as well as expanding its postproduction services, would give Modern a boost in the film industry. For now, it’s wait and see.
Barkat concluded, “The ownership of Deluxe is in the hands of very smart business people, and I’m sure they will evaluate their options.”