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Guggenheim finalizes deal for Dick Clark Productions

September 04, 2012|By Joe Flint
  • The Golden Globe Awards are one of Dick Clark Productions' biggest assets.
The Golden Globe Awards are one of Dick Clark Productions' biggest… (Los Angeles Times )

A consortium of private equity firm Guggenheim Partners, Mandalay Entertainment and Mosaic Media Investment Partners have struck a deal to acquire Dick Clark Productions, a small production company whose specialty is primarily awards shows.

While neither buyer nor seller would disclose the purchase price, people familiar with the transaction said the company was sold for between $370 million and $385 million. Either figure is more than double what current owner RedZone Capital Management paid for DCP in 2007. RedZone is the private equity firm controlled by Washington Redskins owner Dan Snyder.

For Mosaic and Mandalay, this is their second time at bat with DCP, which was founded by the late radio and TV personality Dick Clark. The two companies had owned it a decade ago before selling it to RedZone. Mandalay is Peter Guber's entertainment company while Mosaic is run by Allen Shapiro.

The almost $400-million price for DCP was far more than most industry observers thought the company was worth. Other bidders, including CBS, Core Media Group and a consortium led by Ryan Seacrest, made runs at DCP but bailed when the price went well past the $300-million mark.

DCP licenses and produces The Golden Globes, The American Music Awards and The Academy of Country Music Awards. It also produces the Fox show "So You Think You Can Dance." 

Guggenheim, which also is the majority owner of the Los Angeles Dodgers, has few obvious synergies with DCP. However, it is no stranger to the company as it holds almost 40% of DCP's debt.

Besides the Dodgers, Guggenheim also is an owner of entertainment trade papers Billboard, Hollywood Reporter and AdWeek. Both Billboard and AdWeek have awards shows that will now likely be produced by DCP.

It is likely that the new owners will put their own team in place at DCP. Mark Shapiro, the current chief executive of DCP, had indicated from the start of the sales process that he would leave when a deal was complete.

In an interview, Shapiro said he will continue to consult with the new owners to "help them realize the value" of DCP. Shapiro, who maintains close ties to Snyder, also said he has other projects in the works with the Redskins owner.

Shapiro is a cousin of Mosaic managing partner Allen Shapiro.

ALSO:

Guggenheim near deal for DCP

Six Flags motivating possible sale of DCP

DCP library may not be music to suitors' ears

Follow Joe Flint on Twitter @JBFlint.

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