Jeff Zucker, former president of CNN and CEO of NBCUniversal, explained his M&A focus with Redbird IMI during a conference in London on Thursday, saying that in the media industry ” Quality programming that you own … will be key.” There have been “disruptions” and various challenges.
Investment firms base their work on one key premise. “The idea is that intellectual property and quality content, whether it’s entertainment or news and information, will succeed in the long run with the right amount of capital and patience,” an industry veteran explained at the event.
So, “investing, building, and growing” is the focus at RedBird IMI, which is “not what’s really happening in a lot of media,” Zucker said. “It’s actually quite a relief to be in the process of trying to grow assets, and every one of them that we’ve either started from scratch or acquired, we’re going to invest in and build and grow. are in progress.”
He concluded: “For me, it’s really exciting, and I’m very happy to be doing this as opposed to just managing the deficit.”
His session, titled “A New Take on Old Media,” which covered topics such as Zucker and Gerry Cardinale’s big plan behind the purchase of RedBird IMI, was part of the WSJ CEO Council Summit, which was streamed live.
In February, the company unveiled a £1.15 billion ($1.45 billion) deal to acquire production powerhouse All3Media – the biggest TV producer in the UK and the company behind shows such as reality series and Films such as World War I – owned by Warner Bros. Discovery and John Malone’s cable and telecom company Liberty Global. The deal gives the new owner control over a major production business in scripted and unscripted series as well as theatrical film titles. The deal “will close next Tuesday,” Zucker said Thursday.
And it signaled an appetite for more deals. While RedBird IMI has built “a very good portfolio on the entertainment content side,” he said there is more room for deals that bring in more quality content. He also expressed interest in deals in the news and information space, “particularly in the digital news and information space.” In this context, he cites RedBird IMI’s “miniature” front office sports as a good example, which is the intersection of sports and business. “We would like to increase that, and we will continue to look for these opportunities around the world.” And he stressed: “I’m not trying to run away from the news at all.”
Overall, he said “we would like to continue to be clear” about his future plans for team deals and investments.
Earlier this year, RedBird IMI acquired a stake in Media Res, the studio behind Apple TV+ shows and other projects, founded by former HBO executive Michael Ellenberg.
Launched in collaboration with RedBird Capital and Abu Dhabi’s IMI in late 2022 with a $1 billion war chest, RedBird IMI has a mandate to invest in the news, entertainment and sports sectors. Under Zucker’s leadership, the firm previously inked deals to launch nonfiction studio Ever Wonder as well as sports industry news outlet Front Office Sports. Meanwhile, RedBird Capital has also invested in the likes of Skydance Media, which is looking to acquire Paramount Global, YES Network, and Artist Equity of Matt Damon and Ben Affleck.
Zucker was also asked on Thursday about RedBird IMI recently abandoning its plans to acquire a conservative daily newspaper and magazine amid political and media opposition to a deal due to the firm’s Abu Dhabi financiers. fell He named two “great brands”, noting that brands of “such stature” are “rarely” available. It is a “pretty good business”, better than people realise, but after underinvestment over the past decade it could have benefited from further investment to help it grow in the UK and globally, including in the US. He explained.
“We will move on and do the next thing,” the executive also shared. Asked what mistakes could have been avoided, he said the company tried to be a “good citizen” and therefore did not close any deals immediately. He also suggested that the deal could have been structured differently and possibly “changed the ownership percentage of each entity that was within RedBird IMI” to achieve this. “We didn’t fully appreciate the need to take any of these steps at the time,” Zucker acknowledged.
Both assets are now being bought and can be sold together or separately, he said. “The interest has actually been quite strong,” he said. Interest from players outside the UK has been surprising, Zucker said without revealing details. He advised that the process could take two to three months.
Zucker said that in his previous jobs he was always looking for M&A opportunities and was interested in business practices. What does he miss most about his former career? “Leading a large organization,” Zucker shared.
Not surprisingly, it faced major M&A questions after that. Asked if he might end up running CBS if Paramount Global sells, Zucker said: “It’s so early that it’s not even something I’m thinking about right now. I have been,” he replied. “I don’t know, none of us know what’s going to happen with Paramount, and I’m not involved in any of those discussions or negotiations. So I don’t know what’s going to happen there.”
In general, though, he shared, “I’ll take a look at anything that comes my way. I mean, obviously, I have a lot of experience doing things like that.
He also stated that his team has not yet considered buying CNN, saying: “I know for a lot of people, the movie ends like this: I should come back and buy CNN. It’s not something we’ve considered at this point. It’s not something we’ve ever looked at in any formal way. And he added: “As far as I know, CNN Not for sale.” He added that, “of course, we’d look at it,” if it came up for sale, but also for any “really big news and information brands, big or small.” That’s how it will be.
How does he feel about his time at CNN? Zucker said he was “incredibly proud” of his nine years there, but “of course, we made mistakes,” including covering Donald Trump, he reiterated past comments. “During this campaign … did we give him too much free air time without interruption, too much coverage of his rallies? Yes we did. Do I think that’s why he became president of the United States? no.” Zucker highlighted: “There was a large part of America that was actually quite interested in voting for Donald Trump.”
Asked about his stance on NBA rights and whether Warner Bros. Discovery should buy them, Zucker said, “The NBA is incredibly important to TNT and Turner Networks,” but Emphasizing that they have no insight into the state of negotiations. “Everything is easy in hindsight,” even if outsiders oversimplify many things, he stressed. “It’s really easy for people to throw stones from outside,” Zucker added. “Everyone is a critic. Social media ensures that.”
Zucker also answered a question about journalism at the end of his session, calling journalists a “pain in the ass” by nature. “Even in good times, newsrooms are places of discontent and people rise up.”
What is the role of a top executive? “I’m a firm believer that you have to listen to your employees and listen to your employee base, but I also don’t think you can allow prisoners to be sheltered,” he responded. “Leadership matters.” And that sometimes means “unpopular decisions,” including four to five really tough ones a year.
Zucker was interviewed by Jessica Tonkel, Deputy Media Editor.
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