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Global
sports-related marketing major Sportsworld Media Group,
the company that owns the worldwide rights to ITV's Popstars,
is currently the target of a buy-out by a number of media
majors.
Sources indicate that WPP Group and Omnicom, both among
the world's largest communications groups, are the two most
likely candidates which may acquire a stake in Sportsworld.
If Omnicom does acquire a stake in Sportsworld there will
be no lack of synergy. Sportsworld CEO Geoff Brown has been
quoted in an earlier interview as saying his strategy was
really to create an Omnicom-style vehicle and be a consolidator
within the industry. And John Bernbach, non-executive chairman
of Sportsworld, is a founding director of Omnicom.
Sportsworld's problems arose after it announced at the end
of January that full-year profits for the year to 30 June
were likely to be below market expectations at between £9
million and £10 million.
Even though the company said the second half should be lifted
by renewed sponsorship activity and a range of newspaper
linked promotions connected to football's World Cup and
the Winter Olympics, to name just two major sports events,
this could not prevent a run on the company's share price
which led to a major fall in its share value.
According to a company source, media reports regarding the
state of the company and its finances have been overly exaggerated.
The actual situation is that the company is still making
operating profits and its financials are sound, the source
asserts.
In India the company is a very new entrant (just six months
old) but has already made a mark with two gameshow formats
it licensed and that have taken off in a big way. Super
Selector on ESPN Star Sports has proved a winner for
the channel while Star India's Channel [V] has given its
full to make sure that [V] Popstars is a success.
On the cricket front, Sportsworld has won the rights to
market in India the in stadia hoardings for the upcoming
tour to the West Indies by the Indian cricket team. According
to the source, all the inventory available has already been
sold.
He further stated that Sportsworld was in advanced negotiations
with all the big broadcasters to licence their shows and
some major announcements on that front could be expected
soon.
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