Concept Communications Inc., the TV production company with ties to Rev. Sun Myung Moon’s Unification Church, has apparently taken control of Nostalgia Network Inc., the struggling cable channel.
Concept said Tuesday it paid $ 11.5 million for 5.3 million shares of Nostalgia’s stock from Tiger Communications Co., a limited partnership led by lawyer Terry Christensen that includes former senior Drexel Burnham Lambert exec Gary Winnick.
The deal gives Concept, which already owned roughly 32% of Nostalgia, another 27% of the company. Concept also bought warrants to purchase another 365,000 Nostalgia shares. Tiger may receive another $ 700,000 pending the outcome of matters it declined to disclose.
With a 59% stake in Nostalgia, Concept effectively puts to rest the five-month battle to control the money-losing cable channel. Nostalgia has been in play since last fall, when televangelist Pat Robertson’s Intl. Family Entertainment Inc. bid for the company. After months of negotiations and twice increasing its bid, IFE called off its tender offer last month.
Nostalgia declined to comment Tuesday. The company had hired the New York investment firm Allen & Co. to find a bid for all of the company’s stock to maximize shareholder value. This deal clearly does not do that, but sources say there appears to be little Nostalgia can do about it.
Tiger, which at one time had committed its shares to IFE, started talking with Concept after IFE walked away. Tiger offered to buy Concept’s shares or sell its shares to Concept. When Concept balked at selling, Tiger agreed to sell.
After Concept takes control of Nostalgia’s board, it will buy $ 2 million of newly issued Nostalgia shares at no less than $ 2.30 a share to help revitalize its operations.