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Technicolor, one of the world’s oldest film production technology companies, is in talks with other media and investment groups to sell the privately held business.
Technicolor’s roots date back to 1916, when movies and color technology were first used in Hollywood, but the company has changed hands several times. Previous owners include Britain’s Carlton Communications and France’s Thomson Multimedia.
The business was spun off from the larger Paris-listed group in 2022 and renamed Vantiva. Technicolor is now owned by a group of former lenders and investment funds, including Farallon Capital, Barings and Pimco.
The Paris-based company is now in talks with potential buyers, including private equity firms, a group of Middle Eastern sovereign wealth funds and even rival media groups, people familiar with the company’s plans said. said.
Another person close to the talks said: “Management has right-sized the company and is now on track for growth. Shareholders remain supportive but are evaluating the long-term future of the business.”
Our approximately 6,000 employees are located in offices in the United States, Canada, Australia, Europe, and India and provide visual effects, graphics, and animation services for the film, television, gaming, and advertising industries. Technicolor declined to comment on a possible sale.
The group generates annual revenues of approximately 500 million euros and operates four main business divisions.
The Moving Picture Company (MPC) provides visual effects and computer-generated images for film and television, The Mill provides similar services for the advertising and music industries, and Technicolor Games provides services for the gaming industry. I am. Miklos specializes in animation.
The company was hit hard by the pandemic and subsequent Hollywood strike. People close to the company said the company is too focused on the mainstream film production industry, even though streaming companies such as Netflix pay the biggest checks for production costs.
Last year, the company appointed former Europcar chief executive Caroline Parrott as chief executive officer to lead a restructuring and restructuring plan to put the business back on track for growth.
Media industry veteran Marc-Antoine Darouin, who sold Ascha Media Group to Fremantle Media earlier this year, was appointed business chairman before the summer and will now help oversee strategic planning, including the sale process. are.
The new management sought to expand the company’s business. AI is becoming a fast-growing part of production as its use lowers costs and allows more film and television producers to provide visual effects for their projects. Game studios and advertising are also starting to use more visual effects in their productions.
The group recently received an Oscar nomination for their visual effects work on Top Gun: Maverick, as well as numerous BAFTA, Emmy and other nominations. Technicolor Games has worked on the NBA, Madden, and Fifa franchises, as well as Tom Clancy’s Rainbow 6 Gotham Knights.
