Television
June 11, 2012
Warner Bros. Television Group Signs Deal to Acquire Alloy Entertainment from Zelnickmedia
(June 11, 2012 – Burbank, CA) – The Warner Bros. Television Group has signed a deal to acquire Alloy Entertainment from an investor group led by ZelnickMedia. The deal, which brings together the industry’s leading television production company in WBTVG with the leading producer of youth-oriented content for all media in Alloy Entertainment, was announced today by Bruce Rosenblum, President, Warner Bros. Television Group and Strauss Zelnick, co-founder of ZelnickMedia.
Alloy Entertainment and WBTVG have already enjoyed a successful track record of collaboration, with five of Alloy Entertainment’s properties currently being produced and distributed by WBTVG (“Gossip Girl,” “The Vampire Diaries,” “Pretty Little Liars,” “Lying Game” and the upcoming “666 Park Avenue”), all of which started as high-quality successful book franchises aimed at teen girls and young women. In addition, Alloy Entertainment properties have also been produced for the big screen including Warner Bros Pictures’ two “Sisterhood of the Traveling Pants” films and Warner Premiere’s “The Clique.” In addition to film and television, Alloy Entertainment is the most successful independent packager of fiction in the world. Approximately 50 of the company's titles have achieved New York Times bestseller status, including “The Sisterhood of the Traveling Pants,” “Gossip Girl,” “The Clique,” “The Luxe” and “Pretty Little Liars.”
Leslie Morgenstein, who has served as president of Alloy Entertainment and its predecessor, 17th Street Productions, Inc., since 1999 overseeing the company’s operations, strategy and creative mission, will stay on to run the company within WBTVG.
“The Warner Bros. Television Group and Alloy have enjoyed consistent success together on a number of terrific projects over the last decade,” said Rosenblum. “Alloy Entertainment’s creative and talented team of executives have a unique ability to tap into a young female audience and create content that resonates across multiple platforms. By having them join us as part of our Television Group, we are giving Peter Roth and his team, as well as the other producers of content across our company, the exclusive ability to tap into Alloy Entertainment’s wellspring of proven literary creativity.”
“We are pleased to announce a transaction that will deliver significant value to WBTVG and allow Alloy Entertainment to continue to realize its potential as a leading entertainment content provider,” commented Zelnick.
Alloy Entertainment will continue to collaborate on production and distribution of original digital programming with former sister division, Alloy Digital, which operates a top ranking media and video network focused on the 12-34 demographic. Together, the companies have launched six original web series, including the award-winning “Dating Rules From My Future Self,” which premieres its second season in August 2012.
The closing of the transaction is subject to customary conditions and is expected to occur in the third calendar quarter.
An investor group led by ZelnickMedia acquired Alloy Entertainment in November 2010 in connection with the go-private transaction of Alloy, Inc. Upon completion of this transaction, the remaining businesses of Alloy, Inc. will include Alloy Digital, a leading digital media company targeting the 12-34 demographic, Alloy Education, a recognized industry expert in student recruitment solutions for higher education, and Channel One, the premiere television news network for teens.
Macquarie Capital and O'Melveny & Myers LLP served as WBTVG’s advisors while Allen & Company LLC and Simpson Thacher & Bartlett LLP served as Alloy, Inc.'s advisors in this transaction.
About Warner Bros. Television Group:
The Warner Bros. Television Group oversees and grows the entire portfolio of Warner Bros.’ television businesses, including worldwide production, traditional and digital distribution, and broadcasting. WBTVG is rapidly developing new business models for the evolving television landscape, including subscription-video-on-demand, broadband, wireless and home video exploitation of its vast library. Warner Bros. Television Group is the industry’s top supplier of series supplying an industry-leading 25 series (including one co-production) to the five broadcast networks for the 2012-13 season. Overall, Warner Bros. Television will produce 23 network series and Warner Horizon Television will contribute two to the count, with at least two series on each of the five broadcast networks. This marks the 21st time in the last 26 years that Warner Bros. Television has been the number one supplier of series to broadcasters, and the Studio is the only supplier to have at least one show on each of the five broadcast networks as well as a new series on each of the networks. The Group will also produce 12 scripted series for cable and pay television networks, three alternative series for cable while Telepictures Productions will produce seven first-run strips and Warner Bros. Animation will produce five animated series. All in all, the Group will deliver more than 50 series to the marketplace. About ZelnickMedia:
ZelnickMedia focuses on the media, entertainment, communications and information services industries. The firm is investing from its private equity fund, ZM Capital, and has interests in interactive entertainment, mobile software and services, direct marketing, digital media, broadcast advertising and publishing. About Alloy, Inc.:
Alloy is a leading provider of media and marketing services targeting the 12-34 year old market. Under the Alloy Media + Marketing umbrella, Alloy Digital operates the top ranked media and advertising network of young adult websites and a Top 10 video network, according to comScore Media Metrix, along with the third most subscribed to channel on YouTube; Award-winning Channel One operates the premiere television news network for teens; and Alloy Education specializes in student recruitment solutions for higher education, connecting schools and businesses with college and college-bound students.
The Warner Bros. Television Group oversees and grows the entire portfolio of Warner Bros.’ television businesses, including worldwide production, traditional and digital distribution, and broadcasting. WBTVG is rapidly developing new business models for the evolving television landscape, including subscription-video-on-demand, broadband, wireless and home video exploitation of its vast library. Warner Bros. Television Group is the industry’s top supplier of series supplying an industry-leading 25 series (including one co-production) to the five broadcast networks for the 2012-13 season. Overall, Warner Bros. Television will produce 23 network series and Warner Horizon Television will contribute two to the count, with at least two series on each of the five broadcast networks. This marks the 21st time in the last 26 years that Warner Bros. Television has been the number one supplier of series to broadcasters, and the Studio is the only supplier to have at least one show on each of the five broadcast networks as well as a new series on each of the networks. The Group will also produce 12 scripted series for cable and pay television networks, three alternative series for cable while Telepictures Productions will produce seven first-run strips and Warner Bros. Animation will produce five animated series. All in all, the Group will deliver more than 50 series to the marketplace. About ZelnickMedia:
ZelnickMedia focuses on the media, entertainment, communications and information services industries. The firm is investing from its private equity fund, ZM Capital, and has interests in interactive entertainment, mobile software and services, direct marketing, digital media, broadcast advertising and publishing. About Alloy, Inc.:
Alloy is a leading provider of media and marketing services targeting the 12-34 year old market. Under the Alloy Media + Marketing umbrella, Alloy Digital operates the top ranked media and advertising network of young adult websites and a Top 10 video network, according to comScore Media Metrix, along with the third most subscribed to channel on YouTube; Award-winning Channel One operates the premiere television news network for teens; and Alloy Education specializes in student recruitment solutions for higher education, connecting schools and businesses with college and college-bound students.