Redskins Owner Buys Dick Clark's Production Company (Update3)

By Cecile Daurat and Edward Evans

June 19 (Bloomberg) -- Daniel Snyder, owner of the Washington Redskins football team, agreed to buy Dick Clark Productions Inc. for $175 million, adding a library of live music shows including ``American Bandstand.''

Snyder's private equity firm Redzone Capital and New York- based Six Flags Inc. are jointly funding the purchase, the companies said today in a statement. Theme-park operator Six Flags, chaired by Snyder, will own 40 percent of the venture.

Redzone, which made its first investment in Six Flags in 2004, is expanding into entertainment after backing Tom Cruise's film company last year. TV host Clark, who at 77 is known as America's oldest teenager, started the business half a century ago. It includes such shows as the ``Golden Globe Awards.''

``I don't think it's a great company to be buying,'' said Richard Dorfman, managing director of Richard Alan Inc., a New York-based investment firm focusing on media. ``Award shows are one-shot deals, people see them once. I don't see a great deal of monetization opportunities in this type of library.''

Shares of Six Flags, the second-largest U.S. theme-park operator, fell 11 cents to $6.40 at 4 p.m. in New York Stock Exchange composite trading. They have gained 22 percent this year.

Redzone and Dick Clark Productions said today they hired Creative Artists Agency to develop business opportunities in television, licensing and live events. Snyder will also become chairman of Dick Clark Productions.

``This was a rare opportunity to acquire a powerhouse portfolio and grow it in new directions,'' Snyder said in the statement.

Awards Shows

Clark, who suffered a stroke in 2004, returned as host of the live ``New Year's Rockin' Eve'' broadcast from Times Square in 2005. The program has aired for 35 consecutive years.

Dick Clark Productions was taken private in July 2002, giving Clark him an unspecified amount of shares. The company also produces the ``American Music Awards,'' ``Academy of Country Music Awards'' and co-produces ``So You Think You Can Dance,'' in its third season on News Corp.'s Fox Network.

Founded by Snyder and NVR Inc. Chairman Dwight Schar in 2004, Redzone built up a stake in Six Flags to become its biggest shareholder. In 2005, the firm led a successful proxy fight to oust management and install former ESPN executive Mark Shapiro as its chief executive officer.

Shapiro has since focused on attracting more families to the parks rather than teenagers. The company banned smoking and added entertainment including fireworks shows and parades.

Redzone invested in the movie production company set up by Cruise after Viacom Inc.'s Paramount Pictures terminated the actor's contract last year. It bought the Johnny Rockets chain of 1950s-style burger-and-fries restaurants in February.

To contact the reporter on this story: Cecile Daurat in New York at cdaurat@bloomberg.net ; Edward Evans in London at at eevans3@bloomberg.net

Last Updated: June 19, 2007 16:13 EDT

		Email this article Printer friendly format