New CEO at Entertainment Rights

LONDON, March 19: The
former Warner Music UK chief Nick Phillips has been appointed as the new CEO of
Entertainment Rights, succeeding Mike Heap, as the kids’ and
family-entertainment company confirms that it is in takeover talks.

A statement from
Entertainment Rights said that Heap had also resigned as a director of the
company “in order to pursue other interests.” Heap, who has led Entertainment
Rights for nine years, has come under pressure from shareholders because of the
company’s financial performance in the last year. ER’s share price is said to
have fallen some 73 percent in the last 12 months.

Heap’s replacement, Nick
Phillips, was previously the chairman and CEO of Warner Music UK Limited. Prior
to this, he served as managing director and chairman of Universal Music UK. As
he takes on his new position, the company has confirmed that it is in “very
preliminary talks with two interested parties” about a possible sale.

Rod Bransgrove, the
chairman of Entertainment Rights, noted: “There is no certainty that an
acceptable offer will be made for the company and the Board remains cognizant
of its ongoing fiduciary responsibilities to the company's shareholders. The
decision to appoint Nick Phillips as chief executive has been taken to ensure
that the company maintains an absolute focus on delivering shareholder value
and in re-establishing shareholder confidence.

“In Nick Phillips, we have
selected a chief executive with a wealth of high-level experience of the media
sector and who can provide the leadership qualities and management skills
required to develop and enhance the company's global presence as a major media
company.”

—By Mansha Daswani