Metrodome acquires Target Entertainment
Monday, August 16 2010, 12:36 BST
By Andrew Laughlin,
Metrodome has bought Target Entertainment, which distributes programmes such as Taggart and Flowertots, in a deal worth a reported £800,000.
According to media reports, Metrodome will pay £400,000 in cash for Target with a further £400,000 coming from the issue of convertible loan notes.
However, the acquisition deal does not include Target's production subsidiary Greenlit, which makes programmes such as Vexed and Foyle's War.
Metrodome is understood to be preparing to invest a further £3 million in turning around the Target business, which last year reported a loss before tax of £727,000 on turnover of £13.8m.
Following the takeover, Target founder Alison Rayson will remain in charge as chief executive and also join Metrodome's board.
Speaking to The Guardian, Rayson said that securing Target's future had been a "tough and lengthy" process, but the deal with Metrodome represents a "superb outcome".
She added: "Target's consolidation into the Metrodome group will provide the company with more firepower for rights acquisitions and with an enhanced back office service."
Metrodome executive chairman Mark Webster said: "Target will provide the company with penetration into a well-established TV distribution library with circa 6,000 hours of content.
"As such I am confident that the strong global network of relationships will form the basis of Metrodome's future strategy of becoming a diversified media business, and furthermore will strengthen and enhance future earnings for the company."