Publicly-traded, New York-headquartered Paradise Music and Entertainment (NASDAQ: PDSE) has acquired bicoastal commercial production house Shelter Films. The purchase price was not disclosed.
The transaction, which was completed June 19, further extends Paradise’s reach in the commercialmaking industry. Paradise is also parent company to bicoastal spot production house Straw Dogs; Nashville-based music video, concert film and commercial production studio Picture Vision; Los Angeles-based post house Vapour launched by editor T. G. Herrington late last year; and New York-based spot music house Rave Music (which also maintains alchemy, a New York-based commercial music division). All the entities operate autonomously of Paradise. In ’99, Paradise also established a relationship with bicoastal/international Partizan, providing office space in Los Angeles and New York as well as backroom operational support.
Shelter Films president Steven Shore said that the realities of the business made the Paradise deal an attractive one in that it allowed both the autonomy and the financial backing he had been seeking. "Our work has become more and more visible," said Shore. "To be a truly national company, we had to figure out some way to scale up our operation."
"It’s tricky when you’re an entrepreneur," continued Shore. "This is a business of either big companies or small companies. It’s the middle-sized companies that really have to scramble. I’ve always been trying to find the right economy of scale for Shelter. I was looking for some sort of magic formula; where do I find the right combination of autonomy and having the freedom to run Shelter the way it has been, but still have the backing to benefit from the economies of scale that a larger organization represents?"
One immediate benefit to Shelter is a fortified West Coast presence. Per the deal, Shelter’s West Coast operation will be consolidated at Straw Dogs Los Angeles-based production facility. Conversely, Straw Dogs’ East Coast outfit will move over to Shelter Films’ New York office. "We’ve been referred to as a bicoastal company for two or three years now," said Shore, "and while we have an office [in California], it really hasn’t been fully staffed. Now [Shelter and Straw Dogs] are able to upgrade our respective facilities at the same time." Shelter Films directorial roster is composed of Tim Abshire, Melissa Bolton, Todd Factor and Siraj Jhaveri.
Mark Pollard, VP of business development at Paradise, said, "Shelter really has great relationships with its directors and Steven Shore has, over the years, been known to help cultivate new talent. They’re really good at finding people that are just emerging in the business. Steve’s a really interesting guy and he’s got a great thing going. I just think it really made sense for everybody."
A released statement from Paradise chairman/CEO Jesse Dylan, who also directs through Straw Dogs, read: "We are excited to have Steve and his team join our group. The addition of Shelter Films fits our strategy of bringing innovative, successful companies into our fold, to complement and strengthen our existing businesses. Steve brings with him many years of industry experience to PDSE as well as an impressive client list. He will play an instrumental role in our film and television group as we continue to grow that part of PDSE’s business."
Shore said that, over the past four years, he and Straw Dogs president/CEO Craig Rodgers have had ongoing talks about potential ways of working together. Via Rodgers, Dylan contacted Shore late last year about Paradise. "I find Jesse to be an extremely impressive individual," said Shore. "He’s got a great creative mind but he’s also got a great head for business. I feel the business plan for Paradise is a very good one that, over time, will make a lot of sense."
In addition to its film and television group, Paradise also operates Paradise Music Group, consisting of Paradise Record Group, New York-based music artists management company All Access Management Group and the aforementioned Rave Music.
Paradise’s third division, Paradise Digital Entertainment Group, encompasses Vapour and bicoastal Paradise Digital Productions, which produces and develops Internet content (SHOOT, 2/11, p.7). Paradise also has a production and strategic investment relationship with Marina del Rey, Calif.-based Eruptor Entertainment, which operates a Web site targeted at "Generation Y" males (www. eruptor.com).
Pollack said that Paradise is continuing its talks with assorted companies, but related that no additional acquisitions are imminent.
