Company Case Study #3 (return to index)

Publicly traded award-winning but fledgling television production company that had grown to $100 million in revenue with global distribution.

• Despite rapid growth, the market value of the company had dropped substantially from the IPO price.
• The company was facing increasing global competition.
• An infrastructure capable of accommodating a growing international business with revenues in excess of $100 million was needed.
• The investment community was skeptical of the company's ability to continue to achieve profitable growth.

1. Established a professional management culture with accountability within an entrepreneurial and creative environment
2. Developed a clear strategic plan to focus on:
• the recurring revenue, higher margin broadcast channel business, as opposed to the capital intensive television production business
• fewer larger projects with more certainty of cash flows before commencement of production
3. Secured substantial ( $100 million) operating agreements with international distributors
4. Provided more transparency to the investment community
5. Acquired and/or launched new specialty cable channels, including introducing Canadian versions of successful US specialty channels

• Stock price sustained a 100% increase over a 3 year period
• Merged with largest television and motion picture production company in Canada with the management of the original (smaller) company responsible for running the larger combined business.
• Completed the largest entertainment financing in Canadian history ($545 million) to facilitate the merger
• Market capitalization increased from $60 million to over $600 million