The Chosen studio accused of squeezing out small-time investors
A.V. Club • • entertainment
Key Points:
- Garabedian, a long-term shareholder in 5&2 Productions, accuses the company of understating future earnings when taking the company private, despite The Chosen's growing financial success, including $40 million grossed by season five.
- The final seasons and related productions of The Chosen were projected to generate $1.4 billion in revenue by 2029, implying an enterprise value of about $150 million.
- However, when 5&2 cashed out investors, Goldman Sachs valued the enterprise at only $52.9 million, with investors receiving $3.75 per share, significantly lower than expected.
- Garabedian alleges 5&2 strategically held a reverse stock split vote during Holy Week, resulting in 80% of minority shareholders missing the vote, and claims funds intended for the final season were diverted to cash out investors.
- Dallas Jenkins, co-founder of 5&2 Productions, denied any wrongdoing in response to the allegations.
