Overview of SPT Business Development and Programming Analysis
Overview of SPT Business Development and Programming Analysis February 2009
Business Development & Programming Analysis • 9 total staff Staffing – Led by Jim Underwood (SVP) – 4 BD staff (1 Director, 1 Sr. Mgr, 1 Sr. Analyst) – 3 Programming Analysis staff (1 VP, 1 Director, 1 Mgr. ) – 1 Assistant Ongoing Responsibilities • Current investments -- Navigate strategic decisions for our investments in GSN, ITN, and Fearnet • Budget and MRP -- Provide strategic analysis and recommendations as part of the MRP and budgeting process • Programming analysis – Sheppard our properties toward profitability through analysis of on-air series, term deals, distribution deals; and creation of green light, features sales, and series models Driving Company Growth • New investments and acquisitions -- Identify acquisition / investment opportunities; structure and execute transactions to expand the business • Partnerships -- Assist with negotiations and provide strategic analysis to support production, distribution, and digital businesses with operational partnerships and critical business decisions 2
Business Development Activity Starz • Led negotiation of internet-related terms and all financial analyses • Deal included 3 year extension of term representing $500 -$600 MM in revenue Embassy Row • Completed $25 MM acquisition of Embassy Row • Expands our presence in unscripted TV, supports 2 way distribution pipeline • Adds over $15 MM of EBITDA through FY 13 GSN • Supporting GSN / FUN transaction • Expected to bring an FY 09 gain of $70 -$80 MM and cash of $27 MM Dr. Oz • Supported analysis, pitch, negotiation, and approval of SPT’s distribution of Dr. Oz • $35 - $50 MM of cumulative profits expected Fearnet • Supporting analysis and negotiation of potential transition to an HD linear channel Jib Jab • Strengthened our Overbrook (Will Smith) relationship by partnering to invest in Jib Jab Gaia • Negotiated license agreement for ad-supported and DST content • Invested $1 MM with 100% warrant coverage (company value more than doubled in last investment round) Divx • Supported equity / cash component of deal, which included $1. 5 MM plus 100 k warrants for “approving” Div. X format for DST • Secured additional $750 K and 50 k warrants for SPTI upon their approval for ROW Zillion. TV • Secured equity interest in the company without any cash investment required Hancock on BIVL • Supported SCA / Sony United initiative by facilitating first early window offering on the BIVL 3
Programming Analysis Activity • 14 -21 new series green lights each year (with volume expected to grow given acquisition of Embassy Row) – 8 -12 new broadcast network series per year – 4 -6 new cable network series each year – 2 -3 new syndicated shows each year • 10 made-for-TV green lights each year • 10 -15 analyses of existing series at least once throughout the year and frequently each project multiple times throughout the year • 4 -6 weeks spent building the feature sales model each year • Analyze term deals, distribution deals, participation estimates • Develop the series models for both the budget and MRP • Structure license and talent deals with BA • Work with production to maximize value while reducing budgets • Play a key role in coordinating with the distributing divisions 4
- Slides: 4