UPDATES Zodiak Could Wreck Warner/Shed Deal

As predicted, Warner Bros is set to buy Brit TV production company Shed Media, maker of such programmes as Supernanny and The Choir, for around £100 million ($159 million) to boost its presence in the key market. Warner Bros, part of Time Warner, says the price represented a premium of around 73% from July 29, the last business day before the start of the offer period. Warner is buying a 56% stake in the company from Shed’s management. WB says it has received undertakings from around 73% of Shed shareholders backing the deal. Shed says the deal will enable it to grow further, with the backing of a large international group. The studio must have wanted Shed badly. Back in June, the talk was of Warner offering £75 million for Shed. Managers were understood to be holding out for £90 million. Shed executives are now set for a windfall. Exec Alex Graham will earn £12 million from the deal, while Shed co-founder Eileen Gallagher could earn £7.5 million. Graham has already made £20 million from selling his independent TV company Wall to Wall to Shed in 2007. Who says you can’t make money from the entertainment business?

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