Entertainment One, the Anglo-Canadian TV and film producer and distributor behind Peppa Pig, has made a move into Hollywood by buying a stake in the producer of the US television dramas Grey’s Anatomy and Ray Donovan.
It has agreed to pay $132.6m (£86.7m) for a 51 per cent stake in The Mark Gordon Company, creating a joint venture that will produce and finance premium television and film content.
Giles Willits, EOne’s chief financial officer, said the deal meant the company was able to launch “a new studio” in Los Angeles, building on Mark Gordon’s expertise, contacts and library of content.
EOne already holds the rights to movies including The Hunger Games series but has had only limited operations in the US until now, and said the deal would “alter the balance” of its revenues, away from film and towards television.
Mark Gordon, who produced films such as Saving Private Ryan and Speed, founded the company in 1987 and will stay on. He and his team have the remaining 49 per cent stake and hold an option to sell in seven years. Mr Willits said the library of television drama would generate steady cash flow for years to come.Reuse content