NBC Eyes International Hallmark Channels

LONDON/NEW YORK, August 27: Press reports indicate that NBC
Universal is close to clinching a deal to acquire Sparrowhawk Media, which
operates the Hallmark Channels outside of the U.S., for about $350 million.

Sparrowhawk is owned by private equity firms 3i and
Providence and former Five boss David Elstein. It acquired the international
Hallmark channels in 2005 and this year announced plans for KidsCo, a new
global kids’ channel in conjunction with DIC Entertainment and Nelvana.
Sparrowhawk also owns the worldwide distribution rights to 580 titles from the
Crown Media film library and recently launched a new film channel, Movies 24,
in the U.K.

If concluded, the acquisition would be NBC Universal’s
biggest foray into the British market. Earlier this year, the company announced
a significant expansion plan for its global networks division, detailing a
strategy to launch 20 localized channels in 23 markets across Europe, Asia and
Latin America. That initiative began with the rollout of SCI FI and 13th
Street in the Netherlands. Both channels are also available in Belgium, Spain
and Germany, and SCI FI is also carried in the U.K., Australia and Latin
America. NBC Universal said it was also looking to further drive the distribution
of Universal Channel in new markets like Asia and Central and Eastern Europe,
and in Western Europe and Latin America.