One Big, Happy Family
In a move that gives it a heightened global presence in cable television, Burbank, CA-based Walt Disney Co. acquired Fox Family Worldwide for $3 billion plus the assumption of $2.3 billion in debt.
Owned equally by News Corp. and Los Angeles-based content producer Saban Entertainment, Fox Family reaches 81 million subscribers domestically and another 40 million abroad and generates about $150 million in revenue annually. The channel, which will reportedly be renamed ABC Family, gives Disney a platform through which to reach teens and tweens too old for its namesake cable channel.
Disney said it will distribute content from its other TV holdings, which include ABC, A&E, ESPN, and Lifetime, on the network. The company also gains control of Saban’s 6,500-episode library, which features such successful properties as Power Rangers and Digimon.
“This acquisition strengthens our company’s worldwide business of family entertainment,” said Disney chairman Michael Eisner in a statement.
New York City-based News Corp. will use the cash from the deal to secure its acquisition of DirecTV from General Motors. The sale of Fox Family comes a year after partner Saban exercised buy-out rights, which forced News Corp. to put the net on the block.
Universal Studios, Universal City, CA, signed its largest global marketing alliance to date with Toyota Motor Corp., Torrance, CA. The three-year deal gives Toyota first shot at product placement and promotions in Universal films and videos, as well as exclusive sponsorships in the company’s amusement parks.
New York City-based Nickelodeon’s new Nick Records signed a partnership with New York City-based Jive Records. Jive will oversee international front-line marketing, promotion, and distribution of music products while Nick coordinates on-air campaigns and promotional events. The first joint projects will be the soundtrack to Paramount Pictures/Nickelodeon Movies release Jimmy Neutron: Boy Genius and the debut of singer Nick Cannon.
Los Angeles-based Eastman Kodak Themed Entertainment signed a deal to become exclusive retailer of souvenir photographs at concert and theater venues owned by Clear Channel Entertainment, New York City. Trained photographers will patrol live events taking photos of attendees, then make the photos available for purchase at prices starting at $10. The program will encompass 1,000 music concerts and theatrical events at 38 venues.
Children’s apparel maker OshKosh B’Gosh, Inc., Oshkosh, WI, is partnering with New York City-based Simon & Schuster Children’s Publishing to produce a line of OshKosh B’Gosh-branded interactive children’s books for kids five and under.
Boston-based Reebok signed a 10-year pact with the National Basketball Association, New York City, that will exclusively clad all of the league’s 29 teams in Reebok uniforms beginning in 2004. The agreement includes the WNBA and the league’s developmental league. The NBA currently has contracts with Nike, Champion, and Puma. Reebok recently landed a $10-year, $250 million deal with the National Football League.
