Publicly traded, New York-headquartered Paradise Music & Entertainment (NASDAQ: PDSE) has finalized the purchase of bicoastal commercial production company Straw Dogs from director Jesse Dylan and executive producer Craig Rodgers. Paradise shareholders approved the acquisition at a special meeting held last month (12/16/99).
The deal was initiated with a letter of intent between the two companies last April (SHOOT, 5/7/99, p. 1). At that time, Dylan became chairman and CEO of Paradise while continuing to direct via Straw Dogs. Now Rodgers officially assumes the mantle of Straw Dogs’ president/CEO.
Paradise bought Consolidated Entertainment LLC (d.b.a. Straw Dogs) for 900,000 shares of restricted Paradise common stock. Paradise also acquired Straw Dogs’ directorial affiliate and Dylan’s private holding company, Spur & Buckle, for an additional 541,000 restricted shares. The total of 1.4 million-plus shares is restricted from being traded for a full year. Based on a closing price of a little more than $2 a share at press time, the overall deal is valued at around $2.9 million.
Separate from the Straw Dogs acquisition, Paradise formally announced an affiliation with international production company Partizan. As earlier reported, this relationship includes Paradise providing bicoastal offices and backroom operational support for Partizan in the U.S. Paradise and Partizan are also exploring prospects in talent management and TV programming, according to Partizan worldwide chairman Georges Bermann (SHOOT, 9/10/99, p. 1).
A released statement from Dylan read, "With the addition of Straw Dogs and the alliance with Partizan, we have created the structure to become a new outlet for the production of films and television with first-rate directorial talent. This positions us not only to be content providers in traditional media, but allows us to look toward future forays into talent management, e-commerce and digital media."
Launched in ’96, Paradise is parent company to Straw Dogs; concert film and music video production house Picture Vision, Nashville; spot music house Rave Music, New York (which also maintains alchemy, a New York-based commercial music division); music artists management company All Access Entertainment Management Group, New York; and independent record label PUSH Records, New York. Paradise also has a strategic investment in Marina del Rey, Calif.-based Eruptor Entertainment, which operates an entertainment and leisure Internet destination site targeting "Generation Y" males (www. eruptor.com).
Paradise’s financial performance showed marked improvement in the first quarter of its current fiscal year. For the three-month period, which ended Sept. 30, 1999, Paradise showed a net loss of $196, 382 (on revenues of $3,638,636), compared to a net loss of $774,120 (on revenues of $1,844,466) during the same quarter the previous year. Dylan contended that "our revenue and operating improvements reflect the early stages of our growth initiatives, as well as clear benefits of our program to promote cost savings and efficiencies."
Shortly after the close of this latest reported quarter, M. Jay Walkingshaw, a veteran entertainment industry executive, was named president and COO of Paradise (SHOOT, 10/22/99, p. 1). "As we continue our strategic restructuring of Paradise," Walkingshaw said in a released statement, "we are extremely encouraged by early operating improvements and Paradise’s range of internal and external growth opportunities in the music, entertainment and media markets."
Paradise sees its financial prospects improving further with the acquisition of Straw Dogs. This past fiscal year (July 1, 1998-June 30, 1999), Straw Dogs reported a pre-tax profit of $1 million. The company’s directorial roster includes Dylan, Neil Burger, Charlie Cole, Jason Farrand, Deb Hagan, Mike Rowles and Rob Lieberman. Lieberman maintains his own bicoastal shop, The Lieberman Company, in association with Straw Dogs. Dylan and Rodgers became equal owners/partners in Straw Dogs in February ’98, after buying out the interest in the company held by commercial entrepreneur/executive producer Don Block.
Paradise also recently entered the post arena, launching a division called Vapour. Based in interim Los Angeles quarters, the new venture features noted spot editor T.G. Herrington and operates autonomously of Paradise and Straw Dogs (SHOOT, 12/17/99, p. 7).
