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Category: Business

Headline News Mighty Saban Wrangles Buys For German Broadcaster

Billionaire entrepreneur, Haim Saban, who built a massive entertainment empire on the backs of the MIGHTY MORPHIN POWER RANGERS, became the first non-German to take over a major commercial TV broadcaster in Germany in two deals valued at about $2 billion. The agreement, spearheaded by his COO Adam Chesnoff, gives him a 36% stake in ProSiebenSat.1 and 72% of its voting shares in Germany's biggest broadcasting group. Recent reports had Saban bidding with French channel TF1 for the assets of bankrupt KirchMedia. While TF1 was not part of this deal it may acquire more of KirchMedia at a later date. Saban is also in the final stages to take over Kirch's licensing business, including its vast programming library in a separate $1.4 billion deal. KirchMedia will retain a 16.5% share of ProSiebenSat.1 voting rights via its joint venture with German publisher Axel Springer Verlag. Saban said in a statement, "I am confident that with our extensive experience and contacts in the global media industry combined with the continued hard work and commitment of the talented management team and employees of KirchMedia and ProSiebenSat.1, we will be well positioned for significant long-term growth as advertising levels recover and the overall economy improves in the world's second largest media market." Based in Munich, ProSiebenSat.1 runs four commercial channels: ProSieben, Sat. 1, Kabel 1 and N24, representing more than 25% of the German TV audience and about 40% of the territory's TV advertising revenue. The Egyptian-born Israeli-American Saban will control half of Germany's commercial TV market alongside Bertelsmann's RTL Group. The takeover deal has to be approved by Kirch's creditors as well as the Federal Cartel Office and Germany's media oversight commission. A Saban spokesman said the deal is expected to close in about two months.

Headline News RAI Veteran Annunziata Is President De Jour Of Pubcaster

Lucia Annunziata, a former RAI political programming host and news editor, has been appointed president of RAI, its second president in less than two weeks, it was reported by the HOLLYWOOD REPORTER. Italy's two parliamentary chambers named her the chief executive a day after Paolo Mieli stepped down as RAI president only five days after he was appointed. Mieli claimed political and the technical difficulties spurred his resignation.

Headline News X-Men Battle Is Over

Twentieth Century Fox and Marvel Enterprises have resolved their differences concerning the syndicated television series MUTANT X. Terms of the settlement were not released but have been amicably resolved according to a Fox statement and both sides are looking forward to expanding the relationship. Fox produced the X-MEN film in 2000, based upon the original comic book characters. A sequel is scheduled for release this year.

Headline News Saban, TF1 Near Historic Buy Of Kirch Media

The businesswires are buzzing that entrepreneur Haim Saban and French broadcaster TF1 will most likely buy Germany's biggest broadcast group, Kirch Media. Saban, who ran Saban Entertainment and Fox Family Worldwide before selling off those assets, was in a bidding war with German publisher Heinrich Bauer who stopped making counteroffers this week. This clears the way for Saban and TF1 to clinch a deal valued at about $2 billion to get a 52.2% stake in Kirch's ProSiebenSat.1 and its vast film rights library.

Headline News RAI Minus A President Again

Less than a week after Paolo Mieli was appointed president of Italian state broadcaster RAI, the former newspaper editor resigned as head of the network, citing "technical and political" reasons it was reported by the HOLLYWOOD REPORTER. The upheaval has been unfolding amid controversy over prime minister Silvio Berlusconi's supposed sway over RAI when he controls Mediaset, RAI's main private rival. Mieli is said to have accepted the post on the condition that he would be free to choose the appointee to the general director post, currently held by Angostino Sacca.

Headline News RAI Reaches Consensus On New President And Board Members

Upheavals at RAI have been resolved for the time being with the appointment of Paolo Mieli, head of publisher Rizzoli-Corriere della Sera, as president of Italy's pubcaster, along with four new board members, according to VARIETY. Mieli, a journalist and author of books tracing the history of Italy's leftist politics, replaces Antonio Baldassarre. Baldassarre and RAI board member Ettore Albertoni submitted their resignations in response to government pressure on February 26, 2003.

Headline News RAI Reaches Consensus On New President And Board Members

Upheavals at RAI have been resolved for the time being with the appointment of Paolo Mieli, head of publisher Rizzoli-Corriere della Sera, as president of Italy's pubcaster, along with four new board members, according to VARIETY. Mieli, a journalist and author of books tracing the history of Italy's leftist politics, replaces Antonio Baldassarre. Baldassarre and RAI board member Ether Albertoni submitted their resignations in response to government pressure on February 26, 2003.

Headline News Jim Henson Buy Off And On Again

A U.S. investment group led by media entrepreneur Dean Valentine and Europlay Capital Advisors, LLC terminated its official bid to buy 49.9% of The Jim Henson Company, Inc. from EM.TV & Merchandising. The terms of the non-binding letter of intent agreed upon in late December 2002 have been terminated. Former UPN chief Valentine, who also ran Walt Disney Co.'s Touchstone TV and the animation unit, was keen on buying a majority interest in JHC to expand the Henson brand into all areas of family entertainment.

Headline News Boy Bests Girl In Consolidated Mattel Entertainment Unit

Mattel is consolidating its girls and boys/entertainment business units into one divison renamed Mattel Brands. The new global group includes the Barbie and Hot Wheels mega brands. Chairman/CEO of Mattel Robert Eckert said the move to reduce redundancies was consistent with "our 'one Mattel' approach to doing business," he said. Former boys/entertainment division president Matt Bousquette is promoted to president of Mattel Brands, with the elimination of approximately 5% of the executive level positions, with Adrienne Fontanella exiting as president of the girls division.

Headline News RAI Rumblings As President Resigns

The shakeup continues at Italian state broadcaster RAI with its president Antonio Baldassarre stepping down in response to government pressure. Baldassarre and RAI board member Ettore Albertoni submitted their resignations to Italy's lower and upper houses on February 26. Deputy Prime Minister Gianfranco Fini has been spearheading the move to remove RAI's top executives, especially after they decided to move one of RAI's channels, RAI2, to Milan without government approval.

Headline News Sony Pictures Entertainment Snared in Marvel's Legal Web

Marvel Enterprises sued Sony Pictures Entertainment on February 25, 2003, in Los Angeles Superior Court over a licensing agreement regarding the SPIDER-MAN theatrical release. The suit was filed through Marvel's subsidiary Marvel Characters, Inc., against SPE and SPE Spider-Man GP Inc. Sony does not comment on pending litigation. Marvel said in a statement, "The complaint is not an attempt to stop production of the SPIDER-MAN sequel slated for May 2004 nor is it an attempt to change or upset any of the merchandising/licensing deals that are in place for the sequel.

Headline News Milan Move Causes Troubles For RAI

Chief executives at Italian state broadcaster RAI have been asked to resign by prominent members of the government in response to the broadcaster's decision to move RAI2, one of its three channels, from Rome to Milan, according to THE HOLLYWOOD REPORTER. Deputy Prime Minister Gianfranco Fini has asked the RAI board of directors to step down, especailly RAI president Antonio Baldassarre, who heads the board, and its general director Agostino Sacca.

Headline News Saban Shows Taste for German

Haim Saban, billionaire entrepreneur who ran Saban Entertainment and Fox Family Worldwide before selling off those assets, reportedly will make a binding offer for bankrupt Kirch Media in Germany according to DAILY VARIETY. He is meeting with creditor banks with his chief strategy officer Adam Chesnoff and examining Kirch Media's books. Media conglomerate Kirch owns one of Germany's largest broadcasting groups, ProSiebenSat 1, as well as a vast film library. German publisher Heinrich Bauer is also interested in buying the group.

Headline News Stan Lee Media Broke By The Broker?

Bankrupt Stan Lee Media is suing Merrill Lynch brokerage, seeking $10 million for the firm's alleged part in the company's demise, according to a report by Associated Press. The Internet company named after comics creator Stan Lee filed suit Wednesday in U.S. District Court, alleging the brokerage firm didnt do enough to keep Stephen Gordon, former VP Stan Lee Media, and his brother Jonathan, a Merrill Lynch financial consultant, from running an alleged scheme to manipulate the price of the company's stock.

Headline News RTV Drops To One Board Member

Dr. Peter Duval has resigned from his position as speaker of the managing board of German entertainment company RTV as of January 31, 2003. During the recent restructuring process, the business volume of RTV has been reduced considerably and Duval stated that he no longer wanted to be at the disposal of the restructured company. This restructuring reduced the amount of ongoing production obligations the company had.

Headline News Pixar Prepared To Leave Disney Behind

In a February 6, 2003 fourth quarter and fiscal year earnings teleconference, Steve Jobs confirmed that Pixar was in initial talks with other major motion picture studios, heightening the speculation that Pixar may not renew its partnership with Disney once the seventh film under the current deal is completed. Under the conditions of the existing agreement, Pixar had the right to begin negotiations after the fifth film was delivered.

Headline News IDT Media To Offer Animated Content Production

IDT Media is expanding its animation business, offering its services to toy companies to create low-cost 3D series for television or home video. IDT's production subsidiary Digital Production Solutions (DPS) and its Global Animation Studio plan to provide high-quality 3D animation solutions at a lower cost for toy manufacturers.

Headline News Disney Reports Lowered Profits, Higher Theme Park Attendance

Profits are down but theme park attendance is up, as The Walt Disney Company reported earnings for the quarter ended December 31, 2002. Net income in the quarter was $256 million, or 13 cents per share, compared with net income of $438 million, or 21 cents, in the same quarter last year. These figures included an after-tax charge of $83 million, or 4 cents per share, for investments in aircraft leveraged leases with United Airlines.

Headline News Target Rebrands And Expands

Target Distribution has changed its name to Target Entertainment to better reflect the company's growth from a distribution to a rights management outfit. Target has also completed a move into parent company CSS Stellar's offices in Covent Garden, London, as well as opening a U.S. base in CSS Stellar's New York offices. Overseeing the new venture is Ellen Lovejoy, who joins Target as president, Americas and Australia/New Zealand.

Headline News Disney Asks For Dismissal In Pooh Royalties Case

The fur continues to fly in the Winnie the Pooh royalties case, as The Walt Disney Company has now asked a Superior Court judge to dismiss the nearly twelve year-old lawsuit. According to an AP report, Disney accused Stephen Slesinger Inc., the company that owns the Winnie the Pooh merchandising rights, of "pervasive misconduct and illegal activities," including stealing documents by rifling through Disney's garbage. Disney also said the company destroyed potential evidence in the case.

Headline News EM.TV Given Extension For Loan Repayment

German entertainment company EM.TV & Merchandising AG is close to paying off half of its so-called "Junior loan," allowing its previously announced sale intention of half of the Muppets stake to continue. The consortium banks of EM.TV have decided to extend the term for repayment of the remainder of the "Junior loan" by three months, until the end of April 2003. The "Junior loan" financed EM.TVs 50% acquisition of its interest in the Junior TV joint venture with the failed Kirch Media Group.

Headline News VirtualMagic Animation Up For Sale

VirtualMagic Animation, the North Hollywood-based digital ink, paint and compositing company and former production division of USAnimation, is on the block. According to president Don Spielvogel, the company is being put up for sale by its investors as a result of the changing dynamics of the cartoon animation business in the U.S., as well as the wishes of its non-animation industry investors to move on.

Headline News The NPD Group Reports $10.3 Billion In U.S. Video Game Sales For 2002

According to the latest sales figures from market information company The NPD Group, total U.S. retail sales of video game hardware, software and accessories in 2002 grew 10% from the previous year. The video game industry generated $10.3 billion in sales, surpassing the previous record high of $9.4 billion in 2001. The NPD Group credits the healthy increase in sales to the success of key properties such as: GRAND THEFT AUTO: VICE CITY, MADDEN NFL 2003, SUPER MARIO SUNSHINE, SPIDER-MAN: THE MOVIE, HALO and TOM CLANCY'S SPLINTER CELL.

Headline News Discreet Partners With Turbo Squid For Third Party Plug-In Program

Discreet has entered into an exclusive development and distribution partnership with New Orleans-based Turbo Squid, Inc., the world's premier marketplace for online digital assets. Turbo Squid will act as the worldwide developer, publisher and distributor for the Discreet Certified 3ds max Plug-in Program. Working together, Discreet and Turbo Squid will carefully select plug-ins that bring compelling value to 3ds max artists.

Headline News Cinar Sells Twin Sisters

Kim Mitzo Thompson and Karen Mitzo Hilderbrand, the founders of Twin Sisters Productions, Inc., have repurchased from CINAR Corporation the company they founded. The deal was concluded on January 13, 2003 for US$1.5 million. The sale also settled the outstanding litigation claims against CINAR by Twin Sisters.