Is Sparrowhawk an endangered species?

NBC/Universal picked up Sparrowhawk Media for a mere $350 million. The acquisition significantly improves global distribution for NBC/Universal product and adds the venerable Hallmark brand name to its cable offerings outside the US. Competitors will be scrambling to find other illusive Sparrowhawks.

Stock traders have regularly punished US media companies for international entanglements. But US revenue growth has, to be gentile, stalled unlike demand for television in Europe and Asia. It’s smooth move for NBC/Universal CEO Jeff Zucker.

“Clearly, media is growing more outside the United States than it is inside the United States,” said Zucker to Reuters. Doubling its non-US sales in three years in one of his primary goals. Acquiring Sparrowhawk effectively doubles NBC’s non-US cable operations.

Private equity funds Providence Equity Partners and 3i saw gems in Hallmark’s international divisions in 2005 and bought them for about $210 million. Called Sparrowhawk Media, the company’s signature product is the Hallmark Channel, reaching about 60 million cable households with 18 pay-TV channels. It also offers a film channel called Movies 24. Also acquired are Sparrowhawk’s international rights to 580 Hallmark made-for-TV films, generally known as family fare, and Denver, Colorado distribution center. On closing operations will be merged into NBC/Universal’s Global Networks division. Sparrowhawk chairman David Elstein – former CEO of UK channel Five – moves on to ‘other opportunities’ and a fatter bank balance.

Childrens’ channel KidsCo – a joint venture with animation suppliers DIC Entertainment and Corus Entertainment Inc.’s Nelvana Enterprises - launches in Poland, Hungary, Romania, Turkey and Ukraine in about a week (September 7th). DIC’s library includes Inspector Gadget, Strawberry Shortcake, Madeline, Dennis the Menace and Care Bears. The Nelvana library includes Babar and The Adventures of Tintin.

Though not at all involved in this transaction, Hallmark Channel CEO Henry Schleif, questioned by the Los Angeles Times, added a reality check for other Sparrowhawk hunters: “There is a scarcity of assets and less independent channels around.” - August 30, 2007

Keywords:European television, NBC/Universal

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