eOne pays $132.6m for Mark Gordon

Canadian producer-distributor Entertainment One (eOne) has acquired a majority stake in the US producer behind Grey’s Anatomy and Ray Donovan for US$132.6m.

Mark Gordon

eOne has acquired 51% The Mark Gordon Company and the two companies are now preparing to launch a joint venture independent studio.

The Mark Gordon Company and eOne will finance and produce feature films and content for network, cable and digital platforms which eOne will then distribute internationally.

Gordon, who founded his company in 1987, will lead the LA-based venture as CEO and will divide his time between producing original ideas, and financing projects from other producers.

The deal sees eOne taking a 51% stake in The Mark Gordon Company, which is known for its work on series including Criminal Minds and Army Wives. Gordon has also worked on feature films including Saving Private Ryan and Speed.

The deal will comprise US$127.5m in cash and US$5.1m in eOne shares and eOne has the opportunity to acquire the remaining 49% of the firm after seven years. The arrangement also includes the rights to The Mark Gordon Company’s existing television and film library as well as its current and future production pipeline.

The move is part of a drive from Gordon and other US producers to hold onto more international rights to their shows. A statement from the two companies this morning said the new venture aimed to “maximize artists’ creative freedom, while giving them a meaningful stake in their product.”

Gordon added: “As producers, we have been successful in bringing the vision of talented creators to large audiences. We can now expand our contribution to include financing and strong global distribution. In order to realize the true value of our content, retention of rights ownership and control of international distribution are musts.”

The Mark Gordon Company will complete its current agreement with ABC Studios and continue to develop and produce films across genres, while eOne’s US television business will also continue developing and financing productions independently of The Mark Gordon Company.

In December eOne promoted the chief operating officer of its TV arm, Margaret O’Brien, to executive VP of corporate development, overseeing the company’s increasing M&A activity.

O’Brien previously coordinated the acquisition of Paperny Entertainment and Force Four Entertainment. C21 reported in October that eOne was in the market for small and medium-sized production outfits in the reality space to feed its format and programme distribution efforts.