Boomerang Media Buys ER

LONDON/NEW YORK: After selling Classic Media to Entertainment Rights in 2007, Eric Ellenbogen and John Engelman set up Boomerang Media in partnership with private-equity firm GTCR. Today, Boomerang becomes the new owner of ER, after the kids’ programming outfit, unable to restructure its debt, went into administration.

Boomerang has acquired ER and its subsidiaries Big Idea and Classic Media. This is the first major transaction for the rights-management venture, which intends to invest up to $200 million in ER. Eric Ellenbogen of Boomerang Media said of the deal today: "We’re happy to be back again with our friends and former colleagues at Classic Media, Big Idea (VeggieTales) and now Entertainment Rights. With the support of GTCR we have the opportunity to build upon what we started here nine years ago.” 

“We are pleased to help Boomerang acquire a terrific worldwide platform for exploiting media content,” added GTCR VP Eric Sondag. “We continue to see a number of intriguing investments in this area, and our partnership with Eric and John, an exceptionally talented and proven management team, puts us in a position to pursue attractive opportunities such as this one.” 

ER this morning announced the appointment of Deloitte as administrators, which then reached a deal with Boomerang. The deal will not deliver any return to ER’s shareholders, as a result of the company’s debt, which, as of October 2008 stood at £125 million. The purchase price was not disclosed. ER bought Classic in 2007 for £107 million.