US private equity firm Guggenheim Partners has emerged as the likely acquirer of Dick Clark Productions after Ryan SeaCrest Productions, the production company spearheaded by American Idol host Ryan Seacrest and backed by global buyout firms Thomas H Lee Partners and Bain Capital, was reported to have pulled out of the auction.
According to The Hollywood Reporter Guggenheim could pay as much as $385m for the company after SeaCrest withdrew from the sale process following an initial round of talks and subsequent due diligence.
Entertainment company CBS, Colony Capital and Core Media Group had all been linked with the auction for the business, which is currently controlled by Red Zone Capital, the private equity firm of Washington Redskins owner Daniel Snyder.
The initial interest from Seacrest, pictured, followed global private equity firms Thomas H Lee and Bain Capital agreeing to invest up to $300m in his production company in a bid to target new opportunities in the US media space.
The firms backed Ryan SeaCrest Productions in February to identify, acquire and develop innovative media companies, media content and other media properties that can be leveraged to support a range of media businesses.
Seventeen potential bidders were said to have received deal books with the company’s financial information from The Raine Group, a boutique investment bank running the process.
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