Turner Broadcasting is in advanced discussions toward acquiring a significant stake in Toronto-based Alliance Communications, Canada’s largest filmed entertainment company. According to sources and press reports, Turner would likely wind up with a 19% stake in Alliance to become its second-largest stockholder.
The deal apparently will involve a combination of cash and stock options, though neither side would discuss details. Alliance has assets estimated at more than $200 million.
Observers described the deal as mutually beneficial. Turner stands to tap into a production pipeline of theatrical, television and cable product, modestly produced but of high quality. Alliance gets additional financing for its expanding slate and the prospect of greater access in a variety of U.S. media markets.