NBC Universal agreed to buy Sparrowhawk Media, which owns the channels, from the private equity firms 3i and Providence Equity Partners.
With the acquisition NBC Universal will double the size of its cable operations outside the United States. Sparrowhawk, the owner of the Hallmark channel, with its 18 channels will be integrated into NBC’s global networks division, bolstering its channel offering to 30 and bringing in additional 60m subscribers.
Terms of the transaction were not disclosed yet, but it’s speculating that NBC is paying around $350m to Sparrowhawk. With the integrated business, NBC Universal’s revenues will shoot up to $200m. NBC has earlier announced to expand globally as the company tries to catch up internationally with other rivals. Company’s only 20% income came from outside the United States and by owning Sparrowhawk’s famous channels such as the international channels of Hallmark and Diva TV, will generate 30% of revenues outside the United States.
The acquisition seems lucrative to the NBC as it’ll get access to Hallmark’s channels, which broadcast across 152 territories in Europe, the Middle East, Africa, Latin America and Asia. Apart from it there are also considerable opportunities in the pay-tv industry in fast-growing markets over the next decade.
NBC Universal, which 80% owned by General Electric Co and rest by French media and telecoms group Vivendi, has made clear that there will be some cost saying, but right now didn’t discuses about the possible job cut.
Via: CNN
