NBC Universal hired Ben Silverman in June to reverse the fading fortunes of its broadcast network. But the biggest winner so far seems to be the 37-year-old TV producer and the production company, Reveille, he is poised to sell for more than $100 million.
Since Silverman became co-chairman of NBC Entertainment, in charge of picking the network's shows, Reveille has become a leading source of programming for NBC. Of the 18 prime-time shows NBC has ordered since Silverman's arrival, Reveille has an ownership interest in five of them. In addition, NBC confirmed Friday that it had bought eight other scripts and concepts from Silverman's 5-year-old company.
Reveille had three projects in the works at NBC before Silverman joined the General Electric Co.-owned network. It now has more projects there than any supplier other than NBC Universal's own TV production studio.
The surge in sales has raised questions among the network's other suppliers and business ethics experts about whether, in his position as programming chief, he has favored Reveille shows, possibly enriching himself at the expense of GE shareholders and other studios.
NBC Universal defends Silverman and said that Chief Executive Jeff Zucker had the final say when it came to approving Reveille projects.
Reveille, which is based on NBC Universal's lot in Universal City, is now in exclusive negotiations to be sold for $100 million to $150 million to a London-based firm owned by Elisabeth Murdoch, the daughter of media mogul Rupert Murdoch, according to three people close to the talks.
Reveille's value comes from its shows on the air such as "The Office" and "The Biggest Loser" on NBC and ABC's "Ugly Betty," its numerous projects in development and the foreign distribution rights for those programs.
"It's a bizarre and troubling situation," said Thomas Donaldson, a professor who specializes in business ethics at the Wharton School of the University of Pennsylvania. "The issue is how much of that enrichment should actually be going to General Electric shareholders."
Silverman declined to be interviewed. He is selling his company to end speculation that he might be profiting inappropriately from his decisions at NBC, said a person familiar with his thinking who requested anonymity because he was not authorized to speak on the record.
"This was the only way to put everyone's sniping to rest," he said, adding that it was unfortunate the pending sale was stirring up complaints.
