eOne eyes partnerships for growth

MIPCOM: Transatlantic producer and distributor Entertainment One (eOne) is looking to replicate its deal with The Mark Gordon Company as it seeks to expand rapidly over the next four years.

Stuart Baxter

eOne paid US$132.6m in January for a 51% stake in The Mark Gordon Company, which is behind Grey’s Anatomy and Ray Donovan.

The two firms are now launching a joint-venture independent studio to produce feature films and content for network, cable and digital platforms, with eOne distributing the resulting IP internationally.

Stuart Baxter, president of eOne Television International, told C21 that such deals were a key focus, adding that such an “alignment of interests is going to lend itself to structures like that.”

“What we talk to people about is relationships, like the one with Mark, which is a long-term deal. He hasn’t sold his company and is gone – he’s part of a deal that sees him really building his studio and staying with us, and we’ll both gain from that success. We like that formula, it’s a lot more sustainable.”

Baxter added that eOne, which took a controlling stake in kids’ brand Peppa Pig for US$212m last week, was also wary of the inflated prices being asked for some prodcos – a common theme from senior execs here in Cannes.

“We’re a growth company and there are good opportunities, but we’re not after growth for the sake of it,” he said. “There are a lot of companies out there who think that this golden age allows them to show a business plan that has a hockey stick [growth curve] in it. And they’re valuing themselves based on that.”

eOne set out its five-year plan to double in size last year and has acquired Paperny Entertainment, Force Four Entertainment and Phase 4 Films over the past 18 months.