TV-Loonland takes control of UK's Metrodome

German animation producer-distributor TV-Loonland is to boost its home entertainment business by increasing its stake in UK DVD and video distributor Metrodome Group, which will for the first time distribute Loonland's children's titles.

Subject to approval of Metrodome's shareholders, TV-Loonland will increase its share in the company from 29.9% to 54.18%, giving it operational control of the company.

Metrodome will, in return, assume the home entertainment rights for TV-Loonland's back catalogue of older titles such as My Little Pony, and will have options to new TV-Loonland productions with UK TV exposure during the next three years.

TV-Loonland's series with UK airtime include Pongwiffy and Little Ghosts, both on ITV, as well as Yvon of the Yukon and Cramp Twins, now airing on CBBC.

Metrodome will also take over Loonland Home Entertainment Ventures, in which TV-Loonland's home entertainment rights currently reside.

The deal, worth some £1.25m, will be paid with 7.36m Metrodome shares. In addition, Metrodome will pay licensing fees for TV-Loonland’s titles proportional to revenues.

To kick off the marketing of TV-Loonland titles as quickly as possible, Metrodome will offer a Christmas special VHS and DVD this year consisting of the TV-Loonland programmes Donner and Santa Mouse & the Ratdeer.

Dr Markus Schäfer, head of home entertainment at TV-Loonland, said: {Metrodome, as a TV-Loonland subsidiary, will be embedded in its European expansion strategy. It will be able to realise all other group benefits, including pooling resources to purchase licensing rights.{

Metrodome's restructuring, begun in the spring, is almost completely finished. Its record label DTK and Metro Direct, a direct mailing business, were sold in order for the company to concentrate on DVD distribution and an expansion into children's titles.

Metrodome will probably be moving into TV-Loonland's London building. The company will eventually target France and Germany as additional markets for DVD sales and is also in negotiations with third parties to further build up the family titles catalogue.

TV-Loonland's other UK interests include the 2D animation studio Telemagination.