Warner sets sights on TV production company

Hollywood media giant Time Warner is in talks to take over 'Footballers’ Wives' and 'Supernanny' television producer Shed Media, it was confirmed today.

Shed said Time Warner subsidiary Warner Bros Entertainment was “working with certain members of Shed management” as part of the discussions following mounting speculation of a deal.

It is thought the sale could value Shed at close to £75m (€90m).

Shed revealed two weeks ago that previous suitors Bowmark Capital and Darwin Private Equity had walked away from backing a management buyout, but said it had received another approach.

It is understood Time Warner – the group behind blockbusters such as 'Sex and the City' – wants to add Shed to a recently formed London-based production unit launched to tap into new markets following the international success of US shows, such as 'Gossip Girl'.

Shed shares rose more than 5% after news of the Time Warner talks.

Warner is said to be particularly interested in Shed because of several of its shows, including Supernanny, have already exported well to America.

Shed has an established Los Angeles production office and claims also to have a number of new programmes in production with US networks and cable channels.

The firm was founded in 1998 by Eileen Gallagher, co-creator of 'Bad Girls', who was previously managing director of London Weekend Television and deputy managing director of Granada Broadcasting.

Shed floated in 2005 and has taken over a raft of production houses since launch, now owning Ricochet, Wall To Wall, Twenty Twenty, as well as distribution company Outright Distribution.

The group recently reported flat annual profits at £12m (€14.3m) after a tough year for the broadcast sector, with the market hit by cutbacks due to plunging advertising revenues.

But Shed – also known for popular shows such as 'Who Do You Think You Are?' and 'New Tricks' featuring Amanda Redman – said 2010 had started well, with 64% of this year’s targeted production revenue commissioned and 68% of intellectual property gross profits secured.

The BBC has re-commissioned Shed for a seventh series of school drama 'Waterloo Road' this year, while it will also deliver another series of 'Who Do You Think You Are?' and 'New Tricks'.

New shows due for 2010 include 'High Street Dreams' – a prime-time BBC series, which will take an in-depth look at shopping over the past 140 years.

Management, including chief executive Nick Southgate and Ms Gallagher, own around 65% of Shed.

Ms Gallagher handed over to Mr Southgate at the end of 2008 to take on a creative role as chief executive of Shed Productions.