Peppa Pig maker Entertainment One takes stake in US television producerComments Off on Peppa Pig maker Entertainment One takes stake in US television producer
It has agreed to pay $132.6 million (£86.7 million) for a 51% stake in The Mark Gordon Company to create a joint venture that will produce and finance premium TV and film content.
Giles Willits, Entertainment One chief financial officer, said that the deal meant the company was able to launch “a new studio” in Los Angeles but with a strong “foundation” as it will build on Mark Gordon’s expertise, contacts and library of content.
Entertainment One has had only limited operations in the US until now.
Gordon, who founded the company in 1987, will stay on, and is incentivised because he and his team still have “skin in the game”, with a 49% stake and an option to sell in seven years.
Willits said Mark Gordon’s library of “quality” TV dramas, including 228 episodes of Grey’s Anatomy and 221 episodes of Criminal Minds, will generate steady cashflow for years.
The deal will “alter the balance” of Entertainment One’s revenues, increasing its involvement in TV and lessening its dependence on film, after a year when US and UK cinema box office revenues fell across the industry.
But Willits said cinema takings have picked up thanks to recent hits such as Woman In Black and Mr Turner.