Dick Clark Productions, the company that produces the Golden Globe awards show and the New Year's Eve broadcast hosted for nearly 40 years by its late founder, was sold Tuesday to Guggenheim Partners and a group of investors.
Guggenheim, an upstart Wall Street firm, teamed up with a pair of multimedia investors to buy the production company for an undisclosed sum. A person briefed on the matter said the deal was for about $370 million.
In 2007, RedZone Capital Management bought Dick Clark Productions from another investment group for $175 million. Mr. Clark, the legendary broadcaster who died in April, had no ownership role in the company.
â€We're thrilled about the transaction with Guggenheim Partners,†Mark Shapiro, chief executive of Dick Clark Productions, said in statement, adding that “Dick Clark and his legacy will surely be in good hands.â€
The deal also involved Mandalay Entertainment and Mosaic Media Investment Partners, a collection of investment partners who specialize in entertainment companies. The group is led by Allen Shapiro, the former chief executive of Dick Clark Productions and current chairman of TV Guide Network and TVGuide.com.
The 55-year-old company, which also produces several other TV shows including “So You Think You Can Dance†and the American Music Awards, put itself on the market in June. In response to an expression of interest from a Chinese media company, it hired the Raine Group, a boutique investment bank, to run the sales process. At the time, likely suitors also included several private equity firms.
After weeks of negotiation, Guggenheim emerged as the likely winner. It was the second major deal for the firm this year, after it become majority owner of the Los Angeles Dodgers in March.
“We look forward to continuing DCP's production of branded entertainment that has become a part of the American lexicon,†Todd Boehly, President of Guggenheim Partne rs, said in a statement.
The deal follows a significant court victory, in which a federal judge ruled that the company could keep the Golden Globes show airing on NBC through 2018. The company clashed with the sponsor of the awards, the Hollywood Foreign Press Association, which claimed that Dick Clark Productions should have consulted with it before reaching the NBC deal.
In the statement, Mr. Boehly promised to “work closely with the Hollywood Foreign Press Association, the Academy of Country Music and all of the network partners and sponsors to ensure†the company's “long-term growth and success.â€
The deal, which the new owners expect to complete “expeditiously†must still receive regulatory approval.
Guggenheim Securities was the sole financial adviser to the investors, while legal counsel was provided by Weil, Gotshal & Manges.
