Boat Rocker has sold its 51% stake in L.A.-based talent management company Untitled Entertainment to global asset management firm TPG for approximately $51.6 million and 8.8% equity in TPG’s new management company.

As part of the transaction, the new company will see Michel Pratte, Boat Rocker’s former president, join as CEO, and Eric Taitz, Boat Rocker’s former EVP of corporate development and strategy become COO.

According to a release, Boat Rocker plans to use the cash proceeds from the deal to support its content-first strategy, including increasing its focus on investing in owned IP, particularly in scripted television, premium documentary programming and animation.

The company recently announced it was developing the series Mindset with Don Cheadle’s prodco The Radicle Act. Boat Rocker is already in production on new scripted series BET (Netflix), as well as the second season of Palm Royale (Apple TV+), and the Orphan Black sequel Orphan Black: Echoes (AMC, AMC+, BBC America) is set to debut.

Boat Rocker is also leaving the door open to utilize the cash proceeds from the TPG deal “to pursue strategic merger and acquisition opportunities in a changing market,” the release stated.

“Collaborating with Untitled over the last five years has opened the door to strong partnerships and talent relationships,” said Ivan Schneeberg and David Fortier, co-executive chairmen, Boat Rocker Media and co-chairmen Boat Rocker Studios, in a joint statement. “Given continued uncertainty in the market, we believe more strongly than ever that using our capital and corporate resources to maximize control over our destiny and provide the most flexibility in our IP strategy is the best path forward.”

The release also stated that Boat Rocker continues to be impacted by delays in new content commissions, renewals, production, and paid development which have impacted the industry. Given these factors, coupled with the TPG deal, the statement adds that the company anticipates full year 2024 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be approximately $10 million, with over $75 million enhanced cash available and no corporate debt.

New York-based investment firm LionTree Advisors was a financial advisor on the transaction, with Paul, Weiss, Rifkind, Wharton & Garrison LLP and Stikeman Elliott LLP serving as legal advisors to Boat Rocker.

Photo courtesy of AMC