LONDON — ContentFilm has sealed its acquisition of the Fireworks library and TV sales operation for a reduced price of $21.5 million.
The deal was announced in late April at $29 million. But that was always subject to adjustment according to how much cash the seller, CanWest, generated from the library between Feb. 28 and now.
John Schmidt, chief exec of ContentFilm, said the steep price cut reflects the perf of Fireworks Intl. prexy Greg Phillips and his sales team in the past five months.
Schmidt pointed out that Fireworks also has contractual receivables of $17 million. “This means we’ve acquired a library of 280 TV programs and films for a net cost of under $5 million,” he said.
Fireworks Intl., based in Dublin and Los Angeles, will continue to trade under Phillips as a subsid of Content.
It will be responsible for the sale of TV programs and TV rights to its film library, while ContentFilm Intl., based in London, will continue to handle the financing and sale of new feature films under managing director Jamie Carmichael.
The Fireworks library includes TV shows “Andromeda” and “Mutant X,” as well as features “Rat Race,” “Hard Ball” and “Rules of Engagement.”
The acquisition of Fireworks is a further stage in the redefinition of ContentFilm as a sales and financing company across film and TV, following its decision to withdraw from film production and U.K. theatrical distribution earlier this year.