Mbi’s CEO’s response to the growing backlash that Arthouse Distributor received to take on investors with ties to the Israeli military includes “development of encouragement,” but is ultimately said to be “confusing” and “disappointing.”
In a statement sent on August 16, Efekakaraal addressed the controversy that has been gathering steam since Mbi secured a $100 million investment from Sequoia Capital in late May. Sequoia was a leading investor in Israeli defense technology startup Kela, founded by four veterans from Israeli intelligence agency in response to the terrorist attacks on October 7th.
Kakarel denied the accusation that Mbi was “conspired with events occurring in Gaza” by partnering with Sequoia. He also announced the launch of the Council for Ethical Finance and Investment Policy and Artist Advisory. This would “establish safeguards that separate investors’ interests from editorial and commission decisions,” while Mbi said “creating a risk fund that will settle filmmakers under conflict, evacuation or censorship.” Kacarel also fired Sequoia’s partner Sean Maguire in the US for accusations of Islamophobia – he claimed he was “not a partner in the funds he invested in Mbi.”
The executive statement can be seen in full here – has fallen from the back of a letter signed by numerous filmmakers linked to Mubi, who strongly criticized the company in their partnership with Sequoia. The letter, first published by Variety, was originally signed to include Radu Jude, Aki Kaurismaki, Miguel Gomez, Sarah Friedland, Joshua Oppenheimer and Cherien Davis, among the names of Israeli directors Ali Forman and Nadab Rapid, as well as Amalia Ulman and Alex Russel. The letter publicly denounced Sequoia for “genocide interests,” made three requests to Mbi, including removing Sequoia from the board of directors and introducing ethical policies for all future Mbi investments.
The Palestinian Filmmakers (FWP) – the international group that currently represents more than 9,000 industrial workers and supports the formation of the first letter, has written a statement analyzing Kakarel’s response.
First, he said Mbi was “encouraged” to seek feedback from the film community on new ethical funding and investment policies, but added that companies committed below “meaning ethical standards” are “just a PR stunt.” It also wrote that Kakarel’s statement “rejected the name of a particular crime of genocide” and “refused to name Israel as the perpetrator” and instead described the situation in Gaza simply as a “humanitarian catastrophe.”
These omissions “confidently reveal to the filmmaking community that Kakarel and even Mbi as a company are unable to confront the values they hold.” The FWP’s response repeatedly “calls to Mbi” through three steps outlined in the original letter. Variety reached out to Mbi for comment.
At the time of Kakarel’s statement, the known signatories of the letter were 63 years old. Variety understands that this number has risen to 107. Additional names include Rebecca O’Brien, produced by Mbi, which recently released Mbi. Khalid.
See the full response statement to Kakarel’s letter from Palestinian film workers below.
Following extensive consultations with industry officials on July 8th, filmmakers, programmers and Mbi were terrified of the decision to accept $100 million in funds from venture capital funds that had invested heavily in Palestinian genocide in Gaza, Palestinian film workers provided film workers for Mbi, which Mbi approved and did harm by accepting. We asked Mbi to:
– Publicly condemn sequoia capital for genocide benefits.
– Remove Sequoia Partner Andrew Reed from Mbi’s board of directors.
– Designate ethical policies for all future MUBI investments and respect the BDS/PACBI guidelines in programming and partnerships.
These requests have been revised by over 63 Mubi-Abiliated Filmmakers, including Aki Kaurismäki, Amalia Ulman, Nadav Lapid and Ari Folman.
Therefore, through the framework of these demands, film workers and audiences must evaluate the response of Mbi’s chief executive, Efekacarel, who was featured in Variety on August 14th. In our response, we want to not only convey that the concerning international film community takes as an encouragement to develop Mbi’s statement, but we also want to convey what is both perplexing and unfortunate.
Mbi is encouraged to seek feedback from the film community on new ethical funding and investment policies, and encourages film workers, particularly those affiliated with Mbi, to read the draft policy and send feedback to Mbi. All forms of cultural production involve political and ethical choices, which involves filming production and distribution. If Mubi commits to endorse the universal principles of human rights and international law by refusing to accept future partnerships or funds from individuals and businesses like Sequoias who conspire in response to the genocide, this step should be praised as it will help make the industry safer for all film workers. You need to ensure that Mbi commits to meaningful ethical standards. Less than this is just a PR stunt.
What’s even more confusing is Mbi’s proposal that it would form an independent artist advisory committee. This gesture is confused as a considerable number of artists funded or distributed by Mbi have revealed their position. Mubi must seek accountability for the FWP by meeting three clear steps. Kakarel’s statement shows only his commitment to one of these three steps. If Mbi already ignores his own artist at such a critical moment, we must wonder. What is the Artist Advisory Committee?
We are equally confused by Mbi’s offer to generate funds for “risk artists.” Don’t get me wrong: Artists everywhere deserve more financial support. However, it must be pointed out that more than 270 Palestinian journalists, media workers and artists killed by Israeli forces supported by Sequoia in the past 22 months are unable to use the fund. And this brings about a bigger point. The irresponsible decision to partner with Sequoia cannot be simply offset by supporting a small number of artists.
It is disappointing that Kacarel chose to focus his Sequoia’s accusations on one partner, Sean Maguire, as if the Sequoia investment in military technology actively used in the Palestinian genocide of Gaza was the result of one bad apple. This highlights both Mbi and Sequoia’s responsibility.
Finally, I am extremely disappointed that Kacarel’s statement rejected the name of a particular crime in Genocide. Despite the clear consensus of key experts from the International Court of Justice, the United Nations and Amnesty International, it explains to Palestinians what is happening as a “human catastrophe.” Kacarel also failed to name Israel the perpetrator of its crime. These omissions will undoubtedly haunt Kakarel in the future, but at this particular moment it makes clear to the film-making community and even more that Mbi cannot stand up to the value Mbi holds as a company.
As film workers, we have an obligation to properly describe our moments and confront the fears. As storytellers, we know that the future looks back at this moment to judgement. At least what we can do is refuse to conspire in the horrifying violence unfolding against the Palestinians.
Film workers to Palestinian demands are not revealed by misunderstandings of Mbi’s relationship with Sequoia or its flow of profits. We understand them perfectly well. By allowing Sequoia to make a direct connection to war crimes, Mbi finds herself on the wrong side of the genocide. Therefore, we repeat the call for Mbi to be accountable through the three steps above.
