2nd Mar 2006 07:00
MOTIVE TELEVISION PLC Acquisition of stake in television production company Brown Eyed Boy Motive Television PLC ("Motive"), an AIM listed media investment companyspecialising in television rights owners, today announces that it has acquireda 49.9% stake in UK independent television producer Brown Eyed Boy.Brown Eyed Boy (www.browneyedboy.com) provides content for a range ofbroadcasters, including the BBC and Channel 4 and has a growing library ofmaterial that is available for exploitation. It produced a number of successfulshows including 3 Non Blondes, Killing Time and The Man Who Drank the Universe.Its upcoming productions include Little Miss Jocelyn, Old Gits and God LovesGays.This is the first investment Motive has made since its AIM listing in May 2005and is in line with its strategy of investing in profitable, cash generativeindependent television producers. In addition, Motive has put in placearrangements under which it may acquire the balance of the shares in Brown EyedBoy at a future date for a maximum consideration of ‚£1.6 million (less theinitial consideration).Motive is paying approximately ‚£250,000 for a 49.9% stake in Brown Eyed Boy.This is comprised of ‚£135,000 in cash, and ‚£115,000 in new Motive shares. Thecash component will be financed from Motive's existing cash balances. In theyear to April 30th 2005, Brown Eyed Boy reported a pre-tax profit of ‚£3,207 onturnover of ‚£878,163. It had, as at 30 April 2005, net assets of ‚£24,977.The remaining 50.1% of Brown Eyed Boy will continue to be owned by Brown EyedBoy founder and managing director, Gary Reich. Reich will own approximately 8%of the enlarged capital of Motive, making him the second largest shareholder inMotive. Following completion of the transaction, Gary Reich and his managementteam will remain in place. They will work with Motive to exploit fully existingrights and also develop new content. In the short-term, this will focus onrealising the value of the international DVD rights for key properties such as3 Non Blondes.Application has been made for the 3,833,334 new ordinary shares to be admittedand trading is expected to commence on 6 March 2006.Mick Pilsworth, Executive Chairman of Motive, said: "Gary Reich is one of thebest comedy development talents in the business and Brown Eyed Boy is a greatcreative company. We are very pleased to be making this investment. I workedwith Gary during our time at Chrysalis TV and am delighted to be renewing ourworking relationship. This is the first deal we have struck since arriving onAIM. More will follow. Motive will invest in high quality, creative andinnovative businesses that have proven resilient in the face of changing marketconditions. Through these investments, management intends to take advantage ofa consolidating industry, expand the business rapidly and realise the long-termgrowth potential of the company for investors and other stakeholders."Gary Reich, Managing Director of Brown Eyed Boy, said: "We are very pleasedthat Motive has made this investment. Mick Pilsworth's involvement will allowus to develop both creatively and commercially at an exciting time for thecompany. At the same time, we will be able to share in the success of Motivethrough our shareholding in the company."For further information, please contact:Brunswick +44 (0)207 404 5959James Hogan / Craig Breheny / Ash Spiegelberg PRESS RELEASE ENDMOTIVE TELEVISION PLCRelated Shares:
Motive Television Plc