NBC Universal Completes Sparrowhawk Deal

LONDON,
October 23: NBC Universal has finalized its acquisition of Sparrowhawk Holdings
from Providence Equity Partners, 3i and management shareholders, giving it
control of the Hallmark Channels outside of the U.S.

Regulatory
approvals have been received for the transaction, which brings 18 feeds of the
international Hallmark Channels—reaching 152 territories and more than 60
million subscribers in Europe, the Middle East, Africa, Australia, Latin
America and Asia—to the NBC Universal channel portfolio.

The
deal is in line with the company’s new emphasis on the international market, a
strategy announced by Jeff Zucker, president and CEO, in April. The company’s
Global Networks bouquet already includes the SCI FI, 13th Street, Studio
Universal and Universal Channel. With the acquisition complete, NBC Universal
Global Networks is now home to more than 30 channels, with ambitions to up this
to 50 in the next two to three years.

In
addition to the Hallmark Channels, the deal gives NBC Universal control of Movies
24 and Diva TV, both available in the U.K., and Sparrowhawk's stake in the
KidsCo joint venture. As a result of the sale, NBC Universal also owns the
broadcast facility based in Denver, Colorado, and the international
distribution rights to over 580 titles in the Sparrowhawk international library
(formerly the Crown Media/Hallmark Library).

Sparrowhawk’s
international operations will now be merged into NBC Universal’s Global
Networks division and managed by Roma Khanna, the president of Global Networks
& Digital Initiatives. Titles in the Sparrowhawk library will be managed by
NBC Universal’s television sales division, headed by Belinda Menendez, the
president of NBC Universal International Television Distribution. The Denver
broadcast facility will be integrated into NBC Universal’s Media Works
division, led by John Eck, the president of NBC TV Network and Media Works.

—By
Mansha Daswani