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ITV quiet over 12 Yard

UK broadcaster ITV is refusing to comment on reports that its ITV Productions arm has acquired UK quizshow indie 12 Yard Productions for £35m (US$72m).

Reports suggest that ITV’s content division has made an upfront cash payment of £26m for the Who Dares Wins producer, with another £4m to follow after three years.

That sum is included in order to keep 12 Yard founder and MD David Young, who is also a former head of BBC light entertainment, tied to the company for at least that period, according to reports. An extra £5m is also said to be available on an earnout basis after three years, depending on 12 Yard’s performance.

The deal, which includes the 50% stake in 12 Yard previously owned by Have I Got News For You producer Hat Trick, would see 12 Yard lose its indie status, although the company would continue to operate autonomously, reports suggest.

Even were this to be the case, however, if the company ceased to be independent other broadcasters would be discouraged from commissioning 12 Yard, as its productions would no longer contribute to their indie quota.

Until now, 12 Yard has specialised in producing gameshows for the BBC, including Who Dares Wins, Eggheads and In It To Win It.

The company put itself up for sale in October following the international success of Who Dares Wins (known overseas as The Rich List), which has been sold to or has sales pending in 20 territories. These sales helped 12 Yard’s turnover jump from £6.5m to £11.5m in the year to June 30, 2007.

The Beeb is understood to have reacted to the acquisition news by pushing through a 300-episode deal with 12 Yard for its daytime hit Eggheads late last night.

ITV has invested in two other independent producers in the past year. In July, its subsidiary Granada International paid £1m for a 25% stake in and exclusive distribution and development rights with drama-producing indie Mammoth Screen (Pride and Prejudice).

ITV also looked abroad in May, acquiring a controlling 51% stake in new US joint venture Jaffe/Braunstein Entertainment (Hollywood Wives).

However, the 12 Yard purchase – surely a tactical move to stop the BBC from having first looks at the prodco’s projects – marks the first major strategic move by ITV’s new head of global content Dawn Airey since she took up the post in October.

Airey, a former Five and BSkyB executive, was drafted into ITV to help reinvigorate the troubled terrestrial. She has a pot of £200m to spend on acquisitions, which comes from the recent sales of non-core assets such as ITV’s 33.33% stake in Manchester Utd TV.

Airey’s planned acquisitions are part of ITV chief executive Michael Grade’s broader goal of producing 75% of ITV1’s commissions in-house, in order to create growth through international programming sales – to which, judging by last year’s success, 12 Yard is well equipped to contribute.

Young did not return C21’s calls this morning.

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