NBC Entertainment co-Chairman Ben Silverman on Wednesday sold his television production company to London-based Shine Ltd., owned by media baron Rupert Murdoch's daughter Elisabeth, for $125 million.
Formed in 2002, Reveille is one of the few major independent TV companies that has flourished in an era when media giants control both entertainment production and distribution.
For The Record
Los Angeles Times Saturday, March 15, 2008 Home Edition Main News Part A Page 2 National Desk 1 inches; 48 words Type of Material: Correction
Sale of production company: An article in the Feb. 14 Business section about the sale of NBC Entertainment co-Chairman Ben Silverman's television production company, Reveille, referred to Grant Tinker as having been head of NBC's entertainment division. Tinker was chairman and chief executive of the entire broadcasting company.
Silverman said the sale was bittersweet. "I love Reveille. It was my baby, and a huge amount of energy, commitment and life force went into building it," Silverman said in an interview. "But I realized that I just wanted to focus 100% on NBC."
The transaction resolves some of the conflicts of interest posed by Silverman's dual role. Until the sale, Silverman had served as the top programming executive charged with picking shows for NBC's prime-time schedule and had been the sole shareholder of Reveille -- an arrangement approved by NBC when it hired the 37-year-old producer in June.
During the last nine months, Reveille has blossomed into one of NBC's most important programming suppliers. It has sold at least 14 shows and scripts to NBC for its prime-time schedule since Silverman joined the network. The flurry of sales boosted Reveille's assets and value.
In the last month, NBC ordered a second season of "American Gladiators," with former pro wrestler Hulk Hogan, a sitcom called "Kath & Kim" and "Nashville Star," a talent show that the USA Network had dropped because of low ratings. "Nashville Star" is set to be resurrected on NBC's prime-time schedule this summer.
Silverman is not the first producer-turned-executive to sell his company.
"You can't be buying programs and selling them at the same time," said Grant Tinker, who is credited with ushering in NBC's golden era of programming as head of its entertainment division. He sold his lucrative interest in MTM Enterprises after taking the job in 1981. "I didn't realize as much value as I could have" in the transaction, he said. He declined to comment on the Silverman situation.
NBC established safeguards after hiring Silverman meant to avoid a conflict of interest. Silverman isn't the only person ordering shows, NBC said. Chief Executive Jeff Zucker makes the final call. "We have full confidence in the way NBC Universal has handled this matter," NBC Universal parent General Electric Co. said Wednesday.
