Warner Bros. Inks Shed Media Deal

BURBANK/LONDON: Warner Bros. is teaming with Shed Media management to take the British production and distribution outfit private in a deal that values the company at about £99.9 million.

The 115 pence per share offer reflects a 37.7-percent premium on the Shed stock price at the close of trading yesterday. Holders of about 73.3 percent of Shed stock have agreed to the buyout. Under the terms of the agreement, Warner Bros. will hold a 55.75-percent stake of the company, with 21.37 percent held by the management team and the balance by other employees.

"Warner Bros. Television Group is a globally renowned entertainment business and will provide the Shed Group with the platform from which to support and deliver its growth plans," said Heather Rabbatts, independent chairman of Shed.

Ronald Goes, head of international TV production at Warner Bros., noted: "The United Kingdom is an important television market, with a robust, thriving local production sector. The acquisition of Shed provides Warner Bros. Television Group with immediate scale in U.K. production and complements our existing television production and distribution businesses. The Shed Group’s successful existing and future scripted and non-scripted programming adds programs and formats to our catalogue which can be leveraged internationally. The acquisition of Shed will provide Warner Bros. Television Group with a solid foundation as we extend our local television production business to other major territories.”

Nicholas Southgate, CEO of Shed Media, added, " “In Warner Bros. Television Group we have found the right partner to support Shed’s development and future growth strategy. It has an unrivalled reputation both creatively and in international distribution and my management team are excited about being in the vanguard of the Warner Bros. Entertainment Inc. initiative to build on its international production network.”