Business

LeBron James media company sells minority stake to groups including Nike, Fortnite creator Epic Games

Springhill, an entertainment company co-founded by National Basketball Association star LeBron James, has sold a minority stake to a consortium of investors who value the business at $ 725 million, the two companies said Thursday. rice field.

It was not possible to know the size of the shares sold to investors.

A group of investors includes:

Nike Ltd,

NKE 0.68%

Fortnite creators Epic Games Inc., RedBird Capital Partners, and Fenway Sports Group, the parent company of sports teams such as the Boston Red Sox and the English Premier League soccer team Liverpool FC.

Spring Hill CEO Maverick Carter and Spring Hill Chairman James continue to be the largest shareholder and account for the majority of voting shares, according to people familiar with the matter.

Known for TV shows and movies such as the HBO interview series “The Shop” and “Space Jam: A New Legacy,” Spring Hill used the money to launch new shows, license programs in new countries and content for Epic Games. Consider creating. Among other efforts, Carter said in an interview.

A portion of the proceeds from the sale of shares will be used to finance the acquisition, Carter said. “We are interested in finding a company that focuses on creativity and has creativity at its core,” he said.

SpringHill plans to generate more than $ 100 million in revenue over the next four quarters, he said. Spring Hill has reached the break-even point and is forecasting revenues of $ 150- $ 200 million in 2022, a person familiar with its financial forecast said.

As part of the deal, Spring Hill plans to produce a show with Nike featuring athletes associated with athlete apparel companies, Carter said. Nike has a long-standing relationship with James and Lifelong approval contract With the NBA Superstar in 2015.

In addition to Fortnite, Epic Games, which created Unreal Tournament, will work with Spring Hill to create programming related to its products and ventures. The two companies are already working together, and James partnered with Epic in July to use his portrait in the “Fortnite” game.

James and Mrs. Carter Fenway Sports Group’s own stock, And Spring Hill have contracts to create company content.

Los Angeles-based Spring Hill, co-founded in 2008 by James and Mrs. Carter, produces television shows and films, and Procter & Gamble Co. And PepsiCo Inc. There are 142 employees who create ads for brands such as. We produce TV shows and podcasts and sell our products.

The deal was signed over a 15-month period, during which Paul Watcher, a longtime business adviser to James and Mrs. Carter, traversed the United States to lead negotiations with potential investors. .. An important moment came in June when Wachter and Carter gave a presentation to a group, including Boston Red Sox owner John Henry, in a suite overlooking the fields at Fenway Park.

“When I get out of such a meeting, I feel’OK, that’s it,’” Wachter said.

Red Bird CEO Gerry Cardinale said in an interview that Spring Hill could become a multi-billion dollar company over the next five years, with branded content for advertisers, scripted and unscripted TV shows and movies. , Said that there will be more opportunities to create commercial license agreements.

“Whether it’s open to the public, monetized otherwise, or maintained and capitalized, the company is on track now,” Kardiner said.

Write to Benjamin Marine Benjamin.Mullin@wsj.com

Copyright © 2021 DowJones & Company, Inc. all rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

LeBron James media company sells minority stake to groups including Nike, Fortnite creator Epic Games

Source link LeBron James media company sells minority stake to groups including Nike, Fortnite creator Epic Games

Back to top button