Ryan Kavanaugh angling to buy Universal’s Rogue Pictures

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Looking for ways to slash overhead, Universal Pictures is in talks with Ryan Kavanaugh’s Relativity Media to unload the studio’s genre label Rogue Pictures. Though the four-year-old film unit has been profitable for Universal, the studio began soliciting buyers a few months ago, according to one person close to the matter. Negotiations with Kavanaugh dovetail with his recently struck deal to co-finance 75% of Universal’s annual movie slate.

Like all studios, Universal is under pressure from parent company NBC Universal -- owned by General Electric -- to tighten its belt. Late last week, as the worsening economy washed across Hollywood, NBC Universal chief Jeff Zucker mandated $500 million in companywide cuts, which would amount to a 3% reduction in the media giant’s annual budget.

If the deal closes, Relativity could wind up paying more than $100 million for Rogue, which has a library of at least 13 titles including the summer release “The Strangers,” plus dozens of projects in development. The label also has four films scheduled for release: “Fighting,” starring Terrence Howard and Channing Tatum; “The Unborn,” written and directed by David Goyer; “Last House on the Left,” a remake produced by Wes Craven; and “25/8,” directed by Craven.

It is unclear what would become of Rogue’s seven-member staff, headed by Andrew Rona. One person close to the studio said that Universal might negotiate a producer deal with Rona.

Universal would continue to market and distribute Rogue’s movies for a fee that one person pegged at about 10%.

Executives from Universal and Relativity declined to comment.

-- Claudia Eller