One of the most iconic brands in TV might soon have a new owner – for the second time in less than a year.
Dick Clark Productions, a Santa Monica company that produces live awards shows such as the Golden Globes and Academy of Country Music Awards, is among the assets being considered for possible divestiture by owner Eldridge Industries.
DCP and several other media assets, including The Hollywood Reporter, Billboard, and AdWeek were acquired in December from Guggenheim Partners by the Beverly Hills holding company created by Todd Boehly when he left his post as president of Guggenheim.
Eldridge recently received unsolicited interest in one of those properties, prompting Boehly to hire Moelis & Co. and Goldman Sachs to conduct a strategic review of all of its media holdings.
“When you hire major investment banks, it’s code for ‘We’re for sale,’” said Lloyd Greif, chief executive at downtown investment banking firm Greif & Co.
While the review is still in the early stages, the result might be more acquisitions, partnerships, or divestitures of its properties. DCP and Eldridge’s other media assets together have an estimated valuation of more than $1 billion, according to Greif.
Boehly seems open to all possibilities.
“For several years now, I have been involved in developing and executing a strategy of developing and repurposing global media brands and live events,” Boehly said in a statement. “Last year’s acquisitions by Eldridge of Dick Clark Productions, Billboard, (the) Hollywood Reporter, and other media assets were part of this strategy.”
While Eldridge representatives declined to confirm whether specific assets were being sold, interest in the live show production business is likely prompting the strategic review, which was first reported by Reuters. The media holdings will most likely be split off in a piecemeal fashion in order to unlock the most value for Eldridge.
Dick Clark Productions alone is estimated to be worth between $700 million and $900 million.
“You wouldn’t bring in Goldman and Moelis if this was about a smaller asset,” noted Greif, who said that if patterns held any transaction driven by the strategic review at Eldridge would likely close in 90 to 120 days.
DCP, which was founded by the late radio and TV host Dick Clark in 1957, was acquired by Guggenheim for an estimated $375 million in 2012. It is helmed by Chief Executive Allen Shapiro through a partnership with Peter Guber’s Mandalay Entertainment.
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