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, 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.

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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 53.7% to 111 million 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.

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.

Last June, the company filed for Chapter 15 in U.S. bankruptcy court and ended the proceedings in September. Such filings allow foreign companies to protect U.S. assets from creditors while they are reorganizing.

“Over the past decade, Technicolor has encountered significant and unexpected macroeconomic and industry-specific headwinds that limited its ability to generate cash flows, grow its businesses, and satisfy obligations under its capital structure,” the company said in a court document.

“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.