NBC Universal Seals Hallmark Deal

LONDON,
August 28: NBC Universal has confirmed its acquisition of Sparrowhawk Media,
owner of the Hallmark Channels outside of the U.S., from Providence Equity Partners, 3i and management shareholders.

The
deal gives NBC Universal control of 18 feeds of international Hallmark
Channels, reaching 152 territories and more than 60
million subscribers in Europe, the Middle East, Africa, Australia, Latin
America and Asia. They will join the NBC global channels portfolio, which includes
the SCI-FI, 13th Street, Studio Universal and Universal Channel brand.

The acquisition is in line with the strategy articulated by Jeff Zucker,
president and CEO, in April of this year to more than double the size of NBC
Universal’s global cable channels portfolio to more than 50 within two to three
years. The Hallmark brand brings the bouquet to more than 30 channels.

“This is a perfect strategic investment for NBC Universal and
illustrates our commitment to growing our company internationally,” Zucker
said. “It is another step, among several we will take in the next year, to
transform our entire portfolio, with an eye toward high-growth areas. Our
combined assets will now allow us to build leading global brands and create
scale in the international marketplace. The Hallmark Channels’ geographic
breadth is of particular importance to us, as it will bolster our position in
existing markets and boost our growth in Asia and Central and Eastern Europe.”

The deal also brings to NBC Universal the Movies 24 service on Sky and
Virgin Media, as well as the upcoming Diva TV, slated for a British launch in
October. NBC Universal also takes control of Sparrowhawk's stake in the KidsCo
joint venture with DIC and Nelvana, slated to launch in Central and Eastern
Europe on September 7. The channel operations will be merged into NBC
Universal’s Global Networks division and managed by Roma Khanna, its newly
appointed president of global networks and digital initiatives. NBC Universal
will also own a 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). These titles
will be managed by NBC Universal’s television sales division, headed by Belinda
Menendez, the president of NBC Universal International Television Distribution.