Following its $51.5 million acquisition of Gaiam Vivendi in October, Cinedigm is integrating the two organizations, restructuring staff and shifting the company's theatrical releasing arm to Los Angeles, the company confirmed today.
"We are integrating two very successful organizations and there is some restructuring involved, but our commitment to theatrical releasing is unwavering," Vincent Scordino, SVP Theatrical Releasing, told Indiewire. "We have a slate of amazing films. We have a new president of our entertainment group, Bill Sondheim. He's coming to Sundance with (Cinedigm Chairman and CEO) Chris McGurk and a full team and we anticipate we'll be very active."
While the publicly traded company will still have a New York office, theatrical releasing will be centered in L.A. as a result of the acquisition of Gaiam Vivendi.
Although Scordino declined to comment on the number of executives who would be let go, an industry source said about "a handful" of execs have been laid off, including top staffers in the marketing department.
"Bringing the companies together, there are some layoffs, but while the nature of the relationship is changing, it won't impact our films or our filmmakers," said Scordino. "Those New York executives are staying on as consultants and will continue to work on our current slate and upcoming acquisitions. We have been discussing our plans with filmmakers and prioritizing continuity above all else."
Cinedigm recently had success with "Short Term 12," directed by Destin Daniel Cretton and starring Indiewire Spotlight honoree Brie Larson in one of
the year's most heralded indie performances. The film, released in August, took in $60,137 in four theaters, averaging $15,034, the best average ever for Cinedigm. Previously, only two of the company's films -- "Larger Than Life in 3D" and "Arthur
Newman" -- managed grosses over $100,000.
"Short Term 12," which Cinedigm acquired at this year's SXSW, has easily become the company's top grossing film in its four year history. So far, it has grossed $1,008,507.
Upcoming 2014 Cinedigm theatrical releases include Kelly Reichardt's "Night Moves" and Godfrey Reggio's "Visitors."
In September, Cinedigm partnered with Drafthouse Films to release a slate of critically acclaimed independent films, including the award-winning documentary, "The Act of Killing," across all home entertainment and VOD platforms beginning in 2014. Cinedigm converted thousands of theaters around the country to digital and generally acquires up to 20 titles a year for theatrical release, combined with VOD and ultra-VOD releases.