WBTVG snaps up Allow Entertainment for $100 mn

MUMBAI: The Warner Bros. Television Group (WBTVG) has signed a deal to acquire Alloy Entertainment from an investor group led by ZelnickMedia co-founder Strauss Zelnick.

The deal brings together the industry?s leading television production company in WBTVG with the leading producer of youth-oriented content for all media in Alloy Entertainment.
The closing of the transaction is subject to customary conditions and is expected to occur in the third calendar quarter. Even though the financials were not disclosed, the value is estimated to be in the region of $100 million.

Leslie Morgenstein, who has served as president of Alloy Entertainment and its predecessor, 17th Street Productions, Inc, since 1999 overseeing the company?s operations, strategy and creative mission, will stay on to run the company within WBTVG.

Alloy Entertainment and WBTVG have already collaborated for TV shows and movies with five of Alloy Entertainment?s properties (Gossip Girl, The Vampire Diaries, Pretty Little Liars, Lying Game and the upcoming 666 Park Avenue) currently being produced and distributed by WBTVG all of which started as high-quality successful book franchises aimed at teen girls and young women.

In addition, Alloy Entertainment properties have also been produced for the big screen including Warner Bros Pictures? two "Sisterhood of the Traveling Pants" films and Warner Premiere?s "The Clique."

"We are pleased to announce a transaction that will deliver significant value to WBTVG and allow Alloy Entertainment to continue to realize its potential as a leading entertainment content provider," commented Zelnick.

ZelnickMedia will continue to run the remaining businesses of Alloy including Alloy Digital, Alloy Education, and Channel One, the television news network for teens.

Alloy Entertainment will continue to collaborate on production and distribution of original digital programming with former sister division, Alloy Digital. Together, the companies have launched six original web series, including the award-winning "Dating Rules From My Future Self," which premieres its second season in August 2012.