Portfolio
Sparrowhawk Media
| Sector | Technology, Media & Telecoms |
|---|---|
| Investment type | Buyouts |
| Region | UK |
| Status | Former investment |
Nature of Business
Sparrowhawk Media is a worldwide media business operating channel, broadcast and new media distribution. The business operates the Hallmark Channel outside of the US along with serveral other channels such as Movies 24 and Diva TV. It employs over 200 people across eight offices in five continents.
Investment Overview
3i led the Buyout of Sparrowhawk Media in 2005, backing a new management team with a strong track record in the sector. We had a close relationship with David Elstein, the former CEO of Channel Five, who became Chairman of Sparrowhawk Media. Elstein, a key part of 3i’s media network, had developed a close relationship with the management team and vendor and considered 3i an ideal investment partner to take the business forward and develop the company’s UK and international channels.
We worked together on several key initiatives, initially focusing on integrating the international operations under a common structure then on strengthening the Hallmark Channel content and finally introducing new channels, including Movies 24, KidsCo and Diva TV.
We further cemented the future of Sparrowhawk by re-negotiating a key five-year UK distribution contract with SKY and agreed a three-year contract with Virgin Media.
With Sparrowhawk growing strongly and well-positioned for further international expansion, we were approached by NBC Universal, who, in 2007, acquired the business together with its global portfolio of pay-per-view channels.
