HIT Entertainment, the childrens' entertainment company behind the Bob the Builder phenomenon, said it is buying Lyrick Corp, which brought the world Barney, the purple dinosaur, for $275 million in cash and shares.
Though HIT is a larger company than Lyrick and HIT chief executive Mr Peter Orton will run the show, the deal has been defined as a reverse takeover by the British listing authorities because of certain financial criteria.
Barney is currently one of the most highly rated pre-school programmes in the US and has regularly appeared on US television since 1992. A new broadcast contract to show Barney until 2007 has been signed with the Public Broadcasting Service.
Among the benefits from the deal, HIT says the acquisition of Barney enhances its portfolio of pre-school characters for distribution and sale throughout the world.
And Lyrick's presence in US broadcasting, video and consumer products market-place will also allow HIT to access these markets for its own range of characters.
AFP