Hollywood executives may be worried about a cooling in content spending, but the smart money doesn’t seem to be. Even though companies like Netflix, Warner Bros. Discovery and Disney have indicated that they will be more prudent with their content investments, private equity firms are continuing to invest in entertainment assets at a torrid pace. And while some in the space warn that macroeconomic factors could see things cool down, for now at least, the dealmaking keeps up.
Consider that The North Road Co., Peter Chernin’s production roll-up, is being financed by $500 million from Providence Equity Partners and $300 million in debt from Apollo through its managed affiliates. Chernin tells The Hollywood Reporter that he is now in the market for further acquisitions, leveraging the private equity cash to buy “pure-play” companies that focus solely on creating content.