The ultimate in industry consolidation and family dealmaking

It was reported last week that News Corp, Rupert Murdoch's media empire, is in talks to buy Shine Entertainment, the UK based film and television company. Whilst there is nothing unusual about this at face value, many corporations take minority stakes in young aggressive businesses with a view to acquiring the remaining shares at a later date. It is only when you look in more detail at this potential deal does the view of ultimate industry consolidation spring to mind.

Shine Entertainment was founded back in 2001, with the majority shareholder being Elisabeth Murdoch, amongst a number of other founding shareholders. Thus we have a role reversal of the usual family type deals where the elder founder, and typically a parent, may sell the business to a younger family member. Here we have the Murdochs possibly reversing the scenario with the founding daughter potentially selling her business to her father’s global corporation.

There are other external parties being linked to Shine as well as News Corp, factors which will certainly add more complications to the process, should a deal proceed. It’s an interesting thought - you set up your own company to establish yourself away from the family business, only then to sell your own successful company to end up working…back in the "family" business.

Filed under: media, UK, US, dealmaking