April 18, 2021

DCTRS

Damascus Center for Theoretical and Civil Rights Studies

Technicolor to sell post-production business for $36.5 million

Technicolor, the storied technology and visual effects company, said Thursday that it will sell part of its post-production operation to Streamland Media of Los Angeles for nearly $36.5 million.

The sale of Technicolor Post, which handles sound and color finishing services, is expected to close in the first half of the year.

Streamland supports films, as well as episodic and interactive entertainment, through its businesses including Picture Shop, Formosa Group, Ghost VFX, Picture Head, The Farm Group and Finalé Post. Those companies provide services such as picture and sound finishing, visual effects and marketing.

“Adding Technicolor Post’s technologies and worldwide locations to Streamland will allow us to partner with all of our clients to an even greater degree,” Streamland Media Chief Executive Bill Romeo said in a statement.

Streamland said it expects all of Technicolor Post’s employees to join its company after the acquisition and no interruptions of the services provided to Technicolor Post’s customers.

The sale follows consolidation in the entertainment industry, which has struggled during the pandemic, as many Hollywood productions have been paused or delayed. Technicolor’s production revenues fell 53% to 111 Euros or nearly $135 million in the third quarter compared to a year ago, according to its earnings report.

The company, which has a large operation in Hollywood, is owned by the French electronics and media conglomerate formerly known as Thomson group.

Once one of the world’s largest suppliers of film prints, Technicolor also has been squeezed in the last decade by Hollywood’s rapid march toward digital technology, closing film labs in Glendale, London and Montreal.

“The strategic sale of Technicolor Post is part of our long-term vision for Technicolor Production Services to focus on VFX and animation for the entertainment industry, and creative services and technologies for the advertising industry, which provide the maximum value to our clients,” said Technicolor CEO Richard Moat in a statement.

Moat said Technicolor will focus on these areas through its studios The Mill, MPC, Mr. X and Mikros Animation, which specializes in computer animation.