NBCU acquires Carnival

NBC Universal (NBCU) is continuing its expansion into the UK with the £30m (US$55.6m) acquisition of London-based indie Carnival Film & Television, the prodco behind dramas such as Hotel Babylon and Harley Street.

Under the terms of the agreement, NBCU will acquire 100% of the company, which is currently 75% owned by Southern Star and 25% by Carnival CEO Gareth Neame. Southern Star is receiving £22.5m for its stake.

NBCU’s acquisition also includes library rights to Carnival titles, as well as distribution rights currently held by Southern Star.

NBCU president and CEO Jeff Zucker said: “International growth is one of our key strategic priorities, and that includes boosting our ability to create programming for specific local audiences around the world.

“This acquisition will jump-start our efforts in the very important UK market. Carnival has a great track record, and we are excited about helping this first-class operation become even more successful.”

The deal represents the first acquisition by NBCU’s International TV Production division, headed by president Angela Bromstad (left), and continues the company’s efforts to expand its international business by building a production presence outside the US.

NBCU is aiming to more than double non-US revenues by 2010, and follows the acquisitions of Sparrowhawk Media and a 26% share of NDTV Networks in India, as well as recent NBCU international channel launches, such as the launch of Sci-Fi Channels in Japan, Russia, Asia and Eastern Europe.

The corporation was in May linked with UK-based global production house All3Media – parent company of producers including Lion Television and Lime Pictures – about a possible takeover.

And Bromstad last week revealed plans to C21 for NBCU to recreate the US studio model in London with the appointment of a string of top execs, in order to streamline the production process. Today’s acquisition will strengthen the company’s ability to do that, she said.

“Carnival is a highly respected TV production operation and we are delighted to welcome them into the NBC Universal fold,” said Bromstad. “We feel this deal will prove an excellent strategic fit and present abundant international growth opportunities into the future.”

Carnival’s 2008 line-up has included shows such as Hotel Babylon for the BBC; and Midnight Man, Harley Street and the forthcoming Whitechapel for ITV.

The company, which has been going since 1978, has produced more than 400 hours of drama for TV and cinema, including titles such as Poirot, Jeeves and Wooster, As If, The Whistleblowers and The Old Curiosity Shop.

Neame said: “I am excited to bring the company into the global brand that is NBC Universal under this groundbreaking deal, which offers great strategic opportunities for Carnival and all the talent who work with us.

“As a unique production model in the UK, I believe we will have so much to bring to our broadcaster relationships and the creative community. Equally, as a production base for NBC Universal outside of North America, we will be an important asset for our new parent.”

The deal is expected to close following receipt of customary regulatory approvals.