UPDATE TUESDAY: While no side is discussing financials, I’ve learned more about the size of the deal, in which Legendary Entertainment acquired Asylum. I hear that Legendary ended up paying about eight times what Asylum is projected to make in terms of profits in 2014, which comes to a price tag just north of $100 million. Asylum is set to clear $12-$13 million next year, about three times what the company made in profits this year, as its balance sheet will be bolstered by the one-year output deal Asylum recently inked with ReelzChannel to deliver 50 hours of unscripted programming for the network in 2014, distributed over 10 series. While 8x multiple is within the range for a high-end deal, I hear Asylum’s decision to go with Legendary vs. the other suitors bidding for it came down to the plans Legendary had for the company’s future. In anticipation of the sale, Asylum has been aggressively staffing up in the last couple of months, hiring Stephanie Lydecker as SVP of Development to oversee unscripted development and Joan Harrison as SVP Scripted Programming & Development to oversee miniseries and limited series, as well as signing a pod deal with reality producer Sean Travis.
PREVIOUS MONDAY: In its first company acquisition on the TV side, in a competitive situation Legendary Entertainment has bought 100% of TV production company Asylum Entertainment, producer of The Kennedys miniseries. Asylum will be part of Legendary Television & Digital Media. While Legendary Television will remains focused on producing Legendary-branded scripted content, Asylum will serve as a production label for non-scripted, long-form, sports and other genres. Asylum will continue to operate as an independent company run by its founders, president and CEO Steve Michaels and president and chief creative officer Jonathan Koch, who will report to Bruce Rosenblum, President of Legendary Television and Digital Media.