Redskins' Snyder "Tackles" Dick Clark Productions
Daniel Snyder continues his buying streak. Today,his Red Zone Capital Fund announced it's acquiring Dick Clark Productions for $175 million, taking a 40% equity stake in the deal, with Snyder becoming chairman of the production company. The key asset Snyder snapped up here is the Golden Globes, which Dick Clark produces, and has a deal to continue to produce until 2011. The company nets $4 million a year just from NBC's license fees and other revenues from that one night event. Plus, it produces the American Music Awards, and its "New Year's Rockin' Eve." And the company has modernized a bit-- it produces the hit Fox show "So You Think You Can Dance."
Snyder has nailed down some respected brands, and more importantly, some reliable revenue streams. The question of growth will hinge on whether the production shingle can churn out other hits like "So You Think You Can Dance."
Snyder is best known for owning the Washington Redskins, which he bought for $800 million in 1999, at the time the biggest sports transaction in history. But he also is chairman of Six Flags Amusement Park , and last fall he made a deal to finance Tom Cruise and Paula Wagner's production team--funding between $3 million and $10 million of certain projects. And he's not just focused on entertainment. Earlier this year he said he's planning to acquire the Johnny Rockets diner chain. Do I foresee some synergy between the 50s style diners and the Dick Clark-hosted shows?
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