The Henson family is the winning bidder to buy 100% of The Jim Henson Company from German kids TV outfit EM.TV Merchandising AG for $89 million. Recently Disney, Saban and Sony Pictures had appeared to be the likely buyers. The Henson heirs sold the company to EM.TV three years ago for $680 million and now are set to pay $78 million in cash plus $11 million of the Henson Co. assets.
Viacom-owned Showtime Networks Inc. (SNI) has laid off 70 workers, roughly 10% of its staff, on May 5, 2003, primarily in the areas of affiliate relations, marketing and creative services. This follows on the heels of rival HBO eliminating 20 jobs the previous week.
S4 Studios a traditional/3D animation design and content creation studio founded in 1999 in the San Fernando Valley, has opened its new studio in the heart of Hollywood. The new facility, located at 1529 N. Cahuenga Boulevard, will allow the growing studio greater access to its core businesses of trailers, network graphics and TV commercials while continuing to develop original content for motion pictures, television, direct to video and online.
DIC Entertainment has sued Speed Racer Enterprises to enforce DICs television, merchandise and other ancillary rights to the animated series SPEED RACER, which is airing weekly on the Nickelodeon network. DIC is seeking damages of $5 million plus punitive damages and injunctive relief for fraud, breach of contract, injunctive relief, conversion, slander of title and a number of other causes of action in case filed with Los Angeles Super Court.
Broadcast design industry leaders Paul Newman, Jim Moran and Gary Bonilla have formed CO-OP, a new advertising and design company in New York City that operates as the strategic core of a network of partners with a full range of complimentary creative companies. CO-OP offers its clients brand strategy and brand development through advertising, vertical marketing, business to business communication, direct marketing, interactive, brand design and identity and broadcast design.
A developer wants to raze the Hanna-Barbera Studios buildings that animation legends William Hanna and Joseph Barbera erected in 1963 at 3400 Cahuenga Blvd. near Universal City, to build shops and apartments. HB preservationists are scrambling to mount a campaign to save what they call is a historic and architecturally significant landmark, while some residents of that neighborhood fear the project would worsen traffic in the Cahuenga Pass.
Manex Entertainment, Inc. reported revenues of approximately $1,750,000 with an operating profit of $400,000 in its preliminary unaudited results for the three-month period ended March 31, 2003. Manex Entertainment has been best known in the past for providing Oscar-winning visual effects for big-budget feature films such as THE MATRIX, WHAT DREAMS MAY COME and CROUCHING TIGER, HIDDEN DRAGON. It has west coast facilities in Los Angeles and Hayward, California and is proposing to build east coast facilities in Trenton, New Jersey.
Haim Saban's plan to buy KirchMedia has hit a snag because KirchMedia creditor banks are refusing to accept some terms of the deal, which they claim are different than what Saban originally proposed. "The most recently presented business plan (11 April) has substantial disadvantages for the banks' position in comparison with the originally presented business plan," credit bank, cooperative DZ Bank said in a two-page letter, according to THE HOLLYWOOD REPORTER.
Viacom has reached an agreement with AOL Time Warner to buy AOL's 50% interest in Comedy Central, the only all-comedy network in the U.S., for a total of $1.225 billion. The transaction is expected in the second quarter of 2003, whereby Comedy Central will be wholly owned by Viacom and join MTV Network's line-up of basic cable channels. Viacom is well positioned to do so, having just announced a 26% increase in net earnings in the first quarter of 2003. Viacom posted net income of $443M, or 25 cents a share, compared with a loss of $1.11 billion in 2002, or 63 cents a share.
Roger Chouinard, owner and co-founder of Duck Soup Studios in Los Angeles, has renamed his studio DUCK to go with a new image and logo, as well as new developments in the creative and technical direction of the studio.
Viacom's chairman/CEO Sumner Redstone has been juggling his board of directors, dropping it from 18 to 17 members to "enhance corporate governance," the media conglomerate said in its annual proxy filing. A power debate has been resolved beween Redstone and COO Mel Karmazin. Both have reupped with Viacom signing employment contracts that return significant powers to Redstone, 79, while maintaining Karmazin's authority to run Viacom on a daily basis. It was widely reported that issues had arisen between them when Viacom and CBS Corp., where Karmazin, 59, was CEO, merged.
Brothers Thomas and Florian Haffa, formerly top executives of German kids television group EM.TV, were found guilty April 8, 2003 of fraud and fined $1.5M, according to the HOLLYWOOD REPORTER. Munich judge Huberta Knoeringer said the Haffas deliberately misrepresented EM.TV's finances to manipulate the company's share price and dismissed their claim that mistakes were made because of confusing international accounting procedures and business practices common to the media industry. Thomas Haffa, founder/CEO of EM.TV, was ordered to pay $1.3M while Florian, former CFO, must pay $250,000. The prosecuting attorney Peter Noll had asked for much higher fines and wanted them placed on eight months probation. The Haffas' lawyer Rainer Hamm is appealing the verdict.EM.TV rose rapidly in the late 1990s from a merchandising company to produce and distribute kids shows and went on a buying spree, overpaying for assets such as the Jim Henson Co. ($680M) and a 50% stake in the Formula One race-car circuit ($1.5 billion). The EM.TV trial lasted for five months and is seen as a possible precedent for other corporate fraud trials in Germany. In August 2000, EM.TV published half-year figures that grossly inflated its revenue and profits. The numbers were later corrected downward in October and December. Thomas Haffa sold 200,000 shares worth of EM.TV stock for almost $20M earlier in 2000. EM.TV forecast a pretax profit of $240M, but ultimately booked a net loss of just under $1.5 billion.
Eric Fogel, creator of MTV's CELEBRITY DEATHMATCH and producing partner John Lynn have opened AniMotion Unlimited, a full service animation studio located in Midtown Manhattan. The studio's mission is to keep animation production alive and well on the East Coast, according to Fogel. Fogel was creator/director/co-exec producer of CELEBRITY DEATHMATCH, MTV's first clay-animated series that had a four-season run, starting in 1998.
TOKYOPOP, the leading manga publisher in the North America, is expanding in the U.K., establishing offices in London via a partnership with Red Route Distribution Ltd., the leading supplier of graphic novels to the British book trade and specialized retail market. TOKYOPOP and Red Route hope to tap into Britain's budding market of manga enthusiasts. The companies solidified the arrangement while sharing a joint exhibit at the London Book Fair. Over the past year, TOKYOPOP has more than doubled its revenue and increased its book trade penetration by some 300%. In a daring move for a manga publisher, TOKYOPOP introduced a line of 100% Authentic Manga, graphic novels printed right-to-left, breaking with the Japanese tradition of reading left-to-right, which was a big hit with consumers. Founded in 1996, TOKYOPOP publishes several hit properties based on popular Cartoon Network and Kids' WB! programs. TOKYOPOP titles include SAILOR MOON, GUNDAM WING, INITIAL D, REAL BOUT HIGH SCHOOL and COWBOY BEBOP. It is also publishing novels based upon Disney TV series KIM POSSIBLE and LIZZIE MCGUIRE. Visit www.TOKYOPOP.com for additional information.
German children's TV firm EM.TV & Merchandising again reported a major year-end net loss of $335M on March 31, 2003. EM.TV's revenues reached $272M, down 5% from 2001's adjusted sales. EM.TV cites the major write-off connected to its stake in the Formula One racing circuit and it is still reeling from the aftereffects of the bankruptcy of the KirchGroup. EM.TV CEO Werner Klatten said he expects to improve his company's position significantly soon by the sale of the Jim Henson Co. and acquisition of former Kirch broadcaster DSF, both anticipated to be completed by the end of this month. Klatten said restructuring of EM.TV should be completed in 2003 while the operating board continues to focus on new genres and target groups, especially sports.
Newly formed Alligator Planet, based in San Francisco, has formed a joint venture with tv-animation, the Copenhagen creator of animated and interactive characters. Alligator AP will market to North America programs made with tv-animation's revolutionary Cartoon Broadcast System (CBS) technology and develop new products to utilize this real-time animation broadcast tool. Ralph Guggenheim, AP's exec. producer (former Pixar VP and producer of TOY STORY), told AWN he encountered the tv-animation people at MIPCOM in October 2002. Guggenheim formed his own company in January 2003 with former Colossal Pictures execs and creatives Eli Noyes, Tim Boxell and Alan Buder. "We've been talking with TV cabler channels and the like. We constantly hear, 'How can you do it cheap?' The CBS system is a great opportunity to produce content fairly cheaply and still be fun and compelling." The technology is used now on the NELLY NUT show airing on the BBC, as well as shows airing on many other European channels, including a two-hour talk show. Guggenheim said he's seen how other types of shows, popular in Europe are making their way to the U.S., and sees this is a good opportunity. Guggenheim firmly believes this technology is the new scale of animated TV to come.The Danish firm will market any shows AP comes up with to the European market. Guggenheim said they named the new enterprise Alligator Planet (www.alliagtorplanet.com) because the founding partners like alligators and it's helpful to have a company name near the top of the alphabet while the planet in its name signifies AP's global approach to entertainment and business. The goal of AP is tap into the creative and production capacities of emerging animation studios around the world to produce and distribute stories and characters across a variety of media and ancillary markets.
Entrepreneur Haim Saban signed the 40,000-page contract on March 27, 2003 for the acquisition of the largest film library outside of Hollywood and the film rights business from KirchMedia. The Saban Group is acquiring programming rights to approximately 18,000 films and series. "With this contract now in place," Saban said in a statement, "both the content and distribution assets of Germanys premier media company will be positioned for future success." "The film library is a treasure, which until now has largely been underutilized," said Adam Chesnoff of the Saban Group, who also signed the contract along with insolvency administrator Dr. Michael Jaffé and KirchMedia managing director Hans-Joachim Ziems. Chesnoff continued, "We intend to leverage these unique offerings in order to strengthen both ProSiebenSat.1 and the library distribution business." The contract, along with the agreement to purchase a majority in ProSiebenSat.1 Media AG, is expected to be approved by the KirchMedia creditor committee on March 31, 2003. Terms of the contracts were not disclosed. The transaction also needs to pass regulatory and antitrust review in Germany. Insolvency administrator Jaffé expressed his "satisfaction in being able to obtain with the sale of the KirchMedia core businesses a maximum for the creditors considering the bad economy and the particular situation of the insolvency." KirchMedia is among the largest companies worldwide in purchasing and marketing program rights for free-TV, pay-TV, video and new media. Saban Capital Group (310-557-5100) is a private investment firm specializing in the media and entertainment industries. TV specialist Saban founded Saban Entertainment and the TV network Fox Family Worldwide. In fall 2001 Saban sold Fox Family Worldwide to the Walt Disney Corp. Saban has decades of experience in the TV business, including the production and distribution of children and family shows as well as the film rights trade and the operation of TV channels.
TV-Loonland has sold its 72.6% interest in its SRE Corp. of Korea (formerly Saerom Entertainment Co. Ltd.) to the Seoul-based media company Moohandae Media Ltd. The companies are not disclosing the purchase price. During the 2001 financial year SRE posted losses of 1.1 million Euros, a figure significantly increased by declining revenues during the 2002 financial year, according to TV-Loonland.
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.
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.
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.
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.
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.
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.