Dan Sabbagh
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NBC Universal, the US media group owned by General Electric, has bought the British television production company behind Hotel Babylon and Harley Street in a £30 million deal aimed at bringing high-end UK drama to the US.
The American Olympic broadcaster said it was looking to further increase its production business internationally but ruled out a move on ITV or All3Media, the independent producer, as it tries to double the size of its non-US business by 2010.
Angelea Bromstad, president of international television production, said that NBC Universal "no longer wants to be a passive company that only waits for ideas to come to the US" and said that the network was also attracted by the lower developments costs in Britain.
Its target is Carnival Films, which specialises in high end drama. It makes the popular Hotel Babylon for the BBC and is currently airing the less succesful Harley Street medical show on ITV1. It also has titles such as Jeeves and Wooster as well as Rosemary and Thyme in its library.
NBC refused to disclose the exact sum paid, but Southern Cross, a production company now owned by Australia's John Fairfax, said it would receive £22.5 million for its 75 per cent stake in Carnival. Gareth Neame, chief executive, owns the rest of Carnival, valued at £7.5 million, although it is not clear if he received that much in cash with incentive schemes tying into the business.
Pete Smith, president, NBC Universal international, said that the company was looking at expanding in television production Russia and India and added "I don't think we are done in the UK either". However, dismissed speculation about some of the targets the company had been linked with.
"To date, Jeff Zucker [the chief executive of NBC Universal] has not expressed an interest in going for ITV," Mr Smith said, adding that production firm All3Media, which is owned by Permira, "was not in short term consideration".
However, he did add that NBC Universal would "take a look at" the television channels owned by Virgin Media, if they became available. NBC Universal is thought to have eyed Virgin Media's half share in UK TV, a joint venture with the BBC.
So far, the company's most visible move in the UK has been to buy up the company behind The Hallmark Channel, for £175 million, co-owned by Providence Equity and 3i, although it has been growing abroad by pushing its Sci Fi channel around the world.
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