Reuters – Guggenheim Nears Deal for Dick Clark Productions

Guggenheim Partners is nearing a deal to buy Dick Clark Productions as “American Idol” host Ryan Seacrest and his private equity partners have opted out of the auction of the company, media reports said. Seacrest, along with Thomas H. Lee Partners and Bain Capital, withdrew from the bidding process after an initial round of talks and subsequent due diligence, the Wall Street Journal reported. Separately, Hollywood trade paper The Hollywood Reporter said Guggenheim Partners, the insurance arm of investment firm Guggenheim Partners LLC, had entered final negotiations to buy the company.

 

 

(Reuters) – Guggenheim Partners is nearing a deal to buy Dick Clark Productions as “American Idol” host Ryan Seacrest and his private equity partners have opted out of the auction of the company, media reports said.

 

Seacrest, along with Thomas H. Lee Partners and Bain Capital, withdrew from the bidding process after an initial round of talks and subsequent due diligence, the Wall Street Journal reported.

 

Separately, Hollywood trade paper The Hollywood Reporter said Guggenheim Partners, the insurance arm of investment firm Guggenheim Partners LLC, had entered final negotiations to buy the company.

 

The paper quoted a figure of about $385 million, which exceeds the asking price by 10 percent, citing multiple sources.

 

Shapiro and Washington Redskins owner Daniel Snyder, chairman of Dick Clark Productions, was initially asking for $350 million.

 

Clark, who founded the company in 1957, sold his majority stake to Mosaic Media Group in 2002. Dick Clark Productions is owned by Red Zone Capital, the private equity firm of Daniel Snyder.

 

None of the parties could be reached for comment.