Lions Gate wants Hit

Bob the Builder and Barney the Purple Dinosaur might soon have a new boss.

Lions Gate Entertainment is reported to be thinking about offering more than $1 billion cash (£530 m) for Hit Entertainment, which controls Bob, Barney, and other children’s television shows.

There is another interested bidder, thought to be a non-U.S. consortium, but Hit has declined to name the company that made that bid.

Both bids are attempts to forestall a previous bid from Apax, a private equity firm which is still considered most likely to acquire Hit.

In addition, Apax and Lions Gate met in March to discuss acquiring Hit, but did not come to an agreement to tender a joint offer.

If Lion’s Gate were to acquire Hit, Bob and Barney would join Barbie on Lions Gate’s roster.

The acquisition would give Lions Gate about 14 percent of the U.S. family entertainment market.

Discuss this in the Finance Markets forums

Story link: Lions Gate wants Hit