Vancouver: Canadian producers could have a powerful friend in high places. Earlier this month, Edgar Bronfman Jr. became Canada’s first Hollywood mogul when Seagram Co. (controlled by the Bronfman family) agreed to pay a whopping us$5.7 billion for an 80% stake in diversified entertainment conglomerate MCA Inc. from its current Japanese owner, Matsushita Electric Industrial.

mca owns movie producer/ financier/distributor Universal Pictures, Universal Television, Universal Studios, record companies, theme parks, book publishing, video distribution and a controlling share in Cineplex Odeon Corporation.

Under the agreement to purchase, Matsushita will retain a 20% ownership in mca and absorb the company’s $1 billion debt.

The deal represents a dramatic shift in strategy for Seagram and the Bronfman family, which built its fortune on the liquor business.

The acquisition of mca is not expected to be finalized until June.

The only Canadian film company that will be directly affected by the deal is Cineplex.

mca and CRB Foundation, separate shareholders in Cineplex in the past, now have a combined stake of 38% in the company.

As for the pending deal’s impact on the Canadian production community, Terry Fassburg, Seagram vice-president of corporate communications in New York, says, ‘It’s just too early to tell until the deal is finalized. We don’t have a Canadian agenda formulated on anything. Why we don’t even have a management team yet.’

While many sources in Hollywood were skeptical about Bronfman’s chances for success in a town where investors are downed almost as fast as shots of whiskey at a karaoke bar on a Friday night, the majority were ‘delighted’ that Universal will finally have a more responsive owner that is supportive of their efforts to move forward to grow the company.

Gary Randall, president of Paragon u.s.a., says he found it laughable that there was concern in Canada that Universal (under Seagram’s ownership) might now be able to qualify for provincial subsidies and government funding.

‘As though a multibillion dollar corporation known for making high-end theatrical product would be concerning themselves with getting some involvement on the part of ofip or Telefilm in their productions. Give me a break,’ says Randall.

He adds: ‘The people inside Universal are relieved that the company is now in the hands of like-minded management as opposed to its former Japanese owners.’