Providence Equity and 3i selling <br> Sparrowhawk Holdings to NBC Universal

LONDON – NBC Universal has agreed to buy global pay-TV provider Sparrowhawk Holdings from Providence Equity Partners, 3i Group and management shareholders, for an undisclosed sum.
The deal was announced in London by David Elstein, chairman of Sparrowhak Media; Jeff Zucker, president and CEO of New York-based NBC Universal; and Peter Smith, president of London-based NBC Universal International.
Sparrowhawk – acquired by Providence Equity and 3i in 2005 – has a portfolio that includes the 18 non-U.S. feeds of the Hallmark Channels, which have more than 60 million subscribers in Europe, the Middle East, Africa, Asia, Australia and Latin America.
“Since acquiring the Hallmark Channels business, Sparrowhawk has significantly increased its scale, launching additional channels and feeds, enlarging the staff and embarking on a major joint venture in the form of KidsCo,” Elstein said in a statement.
KidsCo – a collaboration between Sparrowhawk, DIC Entertainment and Nelvana Enterprises – is a muliplatform global channel for children and families that is slated to launch Sept. 7 in central and eastern Europe. Later debuts are planned elsewhere in Europe, Asia and Latin America.
Other Sparrowhawk projects include Movies 24, a made-for-TV movie channel launched recently on the U.K. networks Sky and Virgin TV, and due to roll out internationally in the near future; Diva TV, an entertainment and lifestyle channel scheduled to launch in the United Kingdom Oct. 1, along with Diva +1; and Hallmark +1, due to launch early next year.
“We have not been looking for a sale,” Elstein said, “but the opportunity of joining our assets with those of NBC Universal is unique, and offers our staff, customers and suppliers the prospect of a yet more exciting and expansive future. We wish the combined venture every success under its new ownership.”
The transaction is pending regulatory approvals and other customary conditions. Once the sale is completed, Sparrowhawk’s operations are to be merged into the Global Networks division of NBC Universal and managed by Roma Khanna, the company’s new president of global networks and digital initiatives. The Sparrowhawk archives are to be managed by the television sales division.
Providence Equity Partners Inc. is a global private investment firm based in Providence, with offices in New York City and London, that specializes in media, entertainment, communications and information companies. It has raised $21 billion through seven funds since its founding in 1989. Additional information is available at www.provequity.com.
NBC Universal, formed in 2004 by the merging of NBC and Vivendi Universal Entertainment, is a media and entertainment giant whose portfolio includes major news and entertainment networks, television production operations, a motion picture company, a leading TV stations group, and major theme parks. It is 80-percent owned by General Electric and 20-percent owned by Vivendi.