It’s summer camp season, and not just for kids. The epitome of at least two definitions of the word camp took place last week amidst the scenic surroundings of Sun Valley, Idaho, where the annual Allen and Company conference for the uber-elite and connected yet again produced some of the more unusual and outright bizarre photo ops of any such business shindig. Naturally, it caught the attention of the likes of JEWISH INSIDER:
This year’s attendees include Mark Zuckerberg, Tim Cook, Jeff Bezos, Sam Altman, Sheryl Sandberg, Robert Kraft, Mike Bloomberg, Ivanka Trump, Jared Kushner, Joshua Kushner, Ambassador Yousef Al Otaiba, Mathias Döpfner, Diane von Furstenberg, Barry Diller, Brian Roberts, Adam Silver, Gary Bettman, Mitch Rales, Bob Iger, Alex Karp and more.
All of these A-listers and many more, including a whole lotta folks with direct ties to an administration that looooooves dealmaking, and with a backdrop of yet another wave of potential tariffs ticking away, in a setting as red as the possible degree of sunburn that the more careless might just develop. As you can see, for the most part this isn’t a crowd all that experienced with outdoor preparation. Though I will say that I do know Diller, who’s been to virtually all of these since they started in 1983, is quite an accomplished biker).
While there are business reporters along for the ride, there’s a shroud of secrecy surrounding the actual convos, so for the moment there are few details of the breadcrumbs that may have been dropped along the many trails in the woods where those less athletic than Diller got their steps in. But we are already seeing a few rumors surface of some potential M&A that, encouragingly, seems more driven by content than control. COMIC BOOK MOVIE’s Mark Julian shared some news with apparently more fire than mere smoke via Bloomberg (the news service, not the attendee) yesterday:
Legendary Pictures, the film studio (partially) behind Pacific Rim, Dune, and Godzilla’s MonsterVerse, is reportedly looking to acquire Lionsgate, which is primarily known for John Wick, The Hunger Games, Saw, and Twilight. Legendary Pictures has built its reputation by serving mainly as a co-financier and co-producer on major studio films, especially large-scale “tentpole” blockbusters. This partnership-driven approach has been the foundation of their business model since the company was founded.
Bloomberg reports that Legendary and Lionsgate may first work together as co-financiers on a few pics before deciding on whether to go through with a merger. On the news of a potential acquisition, Lionsgate shares rose over 20% at the close of business on Friday. Industry experts see the merger as a smart move for both companies. Legendary brings strong financial strategy and production experience, while Lionsgate offers a massive, content-rich library of more than 20,000 titles. Together, they form a potential new powerhouse, one that combines business savvy with creative assets.
And in the same spirit of Transformers-like coming together, VARIETY’s Cynthia Littleton was among the many who let us know as the campers were converging that there could be a great one-stop destination for content like that about to emerge:
A+E Global Media is going on the auction block. The parent company of A&E Network, History and Lifetime is joining the growing list of cable channels that are being sold or divested by their studio parent company. A+E Global Media (which was formerly known as A+E Networks) is owned as a 50-50 joint venture by the Walt Disney Co. and Hearst. Disney and Hearst recently tapped the investment banking arm of Wells Fargo to handle a sale process.
THE DESK’s one-man juggernaut Matthew Keys shed a bit more light on the potential that this might uncork:
The possible sale, which could be effectuate as a wholesale transaction or involve divvying up parts of A+E Global Media to different buyers, comes just a few months after Hearst CEO Steve Swartz told employees that the joint venture was looking at a “tough year” ahead amid lower advertising revenue and cord-cutting that has chipped away at distribution fees. A+E Global media includes domestic cable networks A&E, the History Channel, Lifetime and Vice, as well as a robust library of reality-based TV shows, documentaries and low-budget, scripted movies (the latter of which is mostly associated with Lifetime). It also operates international networks and holds a stake in streaming service Philo.
And there are histories that the company has with potential suitors that may very well be reignited. When the king rocker of fleece vests himself David Zaslav was merely running Discovery he augmented Discovery.com with a slew of A&E series. Indeed, the unscripted assets of Lifetime and TLC as well as History and Discovery are practically concentric. And prior to its Comcast days NBCU held an equity stake in A&E. Both Global Networks and Versant would be all the more viable, to the extent they are at all, with such augmentation.
Finally, I’ll throw one more log with some personal connection onto the campfire. The fact that A&E has remained relevant and competitive in an era where it has largely eschewed streaming reliance is largely due to the leadership it’s had from a guy I know pretty wekk, As Littleton reminded:
Under president and chairman Paul Buccieri, A+E has made the most of its deep library by establishing FAST channels and licensing programs around the world. Buccieri, a seasoned producer and programming executive, joined A+E in 2015 as president of A&E Network and History. He was upped to president of A+E Networks Group in 2018.
“Booch” had previously been head of ITV America, where I spent some time helping him and his London-based comrades evaluate what global assets on both the content and network sides they should pursue. During that tenure he brought to the global market a breakthrough hard quiz with a decent UK track record called THE CHASE, which had originally been commissioned as a pilot for FOX–a company he also spent a stint with trying to make MyTV a reality. Job himself couldn’t have saved that effort, but Booch was seen in an extremely favorable light by the Murdochs of all generations. Assuming they’re not quite ready to completely cash out–which as long as Rupert is breathing seems to be a given–parts of the A&E portfolio and Buccieri’s talents and personality would be outstanding and likely well-received infusions. And don’t just take my word for it–for two consecutive years NEWSWEEK named A&E as one of America’s Greatest Workplaces.
So I’ll take the liberty of reminding any tirekickers paying attention that as the fantasy M&A chatter heats up and assets are being judged in three dimensions the value of content applies as much to personnel as it does to physical productions. And I can vouch for the fact that any company looking at A&E would be well-served to find a spot for Buccieri, even if it’s only a short-term play for a future augmentation. He’d be a standout in Sun Valley. I know from his soccer referee weekend gigs he’s in much better shape that a lot of those who usually schlep around it.
Until next time…