Mogul Reportedly Backing Away From PentAmerica

Italian media mogul Silvio Berlusconi plans to significantly reduce his stake in PentAmerica Pictures, the struggling Los Angeles-based production company, sources close to him said Thursday.

PentAmerica started three years ago as a co-venture between Berlusconi and the Cecchi Gori Group, another European communications giant. Plans called for producing a steady diet of Hollywood movies for the world market. But the company soon ran into problems.

Its first two efforts, “Folks” and “Man Trouble,” bombed at the box office. A third film, “House of Cards,” is finally set for release this month, nearly two years after it completed production. Published reports put the company’s early losses at $62 million, not counting marketing costs.

Sources say that Berlusconi became increasingly frustrated over PentAmerica’s low productivity and poor performance. He now plans to produce his own films and TV shows through a Los Angeles branch of Silvio Berlusconi Communications, sources added.

“He’s looking for an office now,” one knowledgeable source said. “He feels he can do better on his own.”

Berlusconi and PentAmerica declined comment on the report.

People close to the company say Berlusconi may keep a small stake in PentAmerica, which is expected to continue to operate under the Cecchi Gori Group.

The company’s latest production is “Snake Eyes,” starring Madonna. It is tentatively scheduled for release this fall.