Playboy Eyeing Acquisition of Dick Clark Productions
LOS ANGELES — Strange bedfellows indeed. Playboy Enterprises may be looking to acquire Dick Clark Productions (DCP).
Today's New York Post reported that the company is among a group of potential buyers that have expressed an interest in DCP, controlled by investment firm RedZone Capital.
The unlikely marriage would give Playboy control over PG shows like “So You Think You Can Dance.”
But since it went private last year with Rizvi Traverse Management, the company reportedly has a healthy war chest of cash on hand to fund such an investment.
RedZone has hired investment bank Raine Group to explore a possible sale of the company, which also produces “Dick Clark’s New Year’s Rockin’ Eve,” as well as the Golden Globes.
But a spokeswoman for Playboy told The Post, “We have not expressed an interest in the company.”
Other potential suitors include “American Idol” host Ryan Seacrest’s production company and Apollo Global-backed Core Media, formerly CKX that also has a stake in “American Idol” through its 19 Entertainment production company.
Simon Cowell may also be in the running.
The price tag on DCP is valued in the $350-400 million range.
But sources told the Post that the price may be too high since Red Zone acquired its stake for around $175 million in 2007.
“What are you buying? The right to produce The Golden Globes and ‘New Year’s Rockin’ Eve’?” a source said.
Critics say that unlike movies and sitcoms, reality-TV and award shows have no residual value.