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Artisan pulls IPO
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March 15, 2001: 4:00 p.m. ET
Movie studio cites market conditions, hires bankers to consider possible sale
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NEW YORK (CNNfn) - Independent movie studio Artisan Entertainment, which brought "The Blair Witch Project" to theaters, may not be independent much longer.
Artisan withdrew its proposed $102 million initial public offering and is now consulting investment bankers about a possible sale of the company.
With the Nasdaq composite index closing below 2,000 Wednesday, Artisan withdrew its IPO citing "market conditions," a reason very familiar to the new issues market in recent times.
"Due to the volatile conditions in the IPO market and with no relief in sight, we believe it is appropriate to withdraw our S-1 filing," said Amier J. Malin, Artisan CEO, in a statement released late Wednesday.
Artisan said it has "received unsolicited expressions of interest from a number of parties regarding a possible merger or acquisition involving the company." The company hired Merrill Lynch and Allen & Co. to help evaluate the offers.
"The board has established a formal process so that it can make an informed decision about how best to exploit Artisan's future opportunities and maximize shareholder value," Malin said.
Artisan already has has "substantive discussion" with companies, the Hollywood Reporter said Thursday, citing an investment banker familiar with the situation.
According to one analysts who follows the industry, USA Networks (USAI: Research, Estimates) in rumored to be interested in adding Artisan to its USA Films studio.
Another potential suitor could be fellow independent but smaller studio Lions Gate Entertainment (LGF: Research, Estimates), if the price is below $1 billion, the analyst said.
If a company does snare Artisan, it also will acquire a film library with over 6,700 titles, including "It's a Wonderful Life," "The Last Emperor," and "Terminator."
Led by Bear Stearns, Artisan filed for its offering in Feb. 2000 and planned to sell 6 million shares at $16-to-
$18 per share. The company expected to trade as "RTSN" on the Nasdaq. 
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