KW confirms Biondi will advise on acquisitions

Exec's work raises eyebrows on Wall Street

By MARTIN PEERS

NEW YORK -- King World Productions confirmed it has retained former Universal Studios chairman Frank Biondi as a consultant on strategic planning and acquisitions, as the syndie once again focuses on using its billion dollar cash pile for expansion.

While expected (Daily Variety, Jan. 27), Biondi's decision to work with King World raises eyebrows on Wall Street and among fellow entertainment execs. "Its a little bit of a strange fit," said one Wall Streeter, given Biondi's CEO experience with blue chip entertainment companies and the King brothers' colorful personalities.

Biondi a plus for KW

For King World, the advantages are clear. "Frank has not only been at the helm of several of the most powerful conglomerates in the industry, but he has also been the architect of incredibly successful acquisitions during his impressive career," said King World CEO Michael King.

King World stock jumped $1 to $27.87 Thursday.

The advantages of the arrangement are not so clear for Biondi, who left U with a payout estimated at $30 million. But people close to the situation said Biondi had been friendly with the Kings for many years and the consultancy was very much a part-time engagement.

Biondi declined comment.

Planning fund

More of his time will be spent on a media- and entertainment-centered investment fund he is now planning, sources said. It will be several months before the fund raises money, however.

While Biondi will be focusing on acquisitions for both the fund and King World, the scale of the two projects will be different, sources said.

King World has $1 billion in cash reserves, considerably more than the fund is expected to raise.

Still, the big question is whether King World will act on Biondi's advice. Over the past few years, the company has looked at many potential acquisitions, advised by media execs such as Jules Haimovitz and Stephen Palley, without doing anything.

Sources say the Kings are keen on following through with an acquisition this time around.