Creative cops coin
Prod'n services provider lands $30 mil from United
The coin, the largest single investment in the tech company so far, will serve to bolster Creative Planet's rollout of wireless production tools for the film and TV industry during the next year.
"After the big market correction in April, we've been looking for a strategic partner to make sure we have enough capital to sustain our business," chairman and CEO Allen DeBevoise told Daily Variety. "United is a very forward-looking company in terms of exploring electronic marketplaces and Internet b-2-b solutions."
In a separate agreement where the financial terms remained undisclosed, Creative Planet acquired from United a database -- called the Knowledge -- of film and TV professionals in the U.K. and Ireland. In exchange, United gets exclusive sales and marketing rights in those territories for Creative Planet's products and services.
"The Knowledge is the LA 411 for the U.K. and Ireland," DeBevoise said. "The production and entertainment business is global, and we're very excited that we have a strategic partner that's based in Europe."
Under the agreement, United CEO Clive Hollick will join Creative Planet's board of directors, which also includes Jack Valenti, Frank Biondi, Ted Leonsis and Internet World founder Alan Meckler.
Lined up with leader
"In a global market driven primarily by the U.S., this innovative investment allies us with the market leader in application software for the film, TV and video market, with the clearest vision of the future working practices of the industry," Hollick said. "The addition of Creative Planet's suite of products greatly enhances our own product offering in the U.K. and Ireland markets."
United News & Media's assets include PR Newswire, high-tech publisher CMP Media Inc. and market research company UIG. Shares of the company closed unchanged at $23.25 Friday on the Nasdaq. United has a $5.8 billion market cap, with 80% of its profits being earned in the U.S.
Earlier this year, privately held Creative Planet closed a $38 million round of equity funding, building on $25 million raised last year. Other investors in the company include the Times Mirror Chandler Trust Ventures, Waterview Advisers, SunAmerica Investments and Chase Capital Parnters.
In an adjacent move, Creative Planet last week laid off under 10 people as a result of the company moving a subsid from Oakland to Los Angeles. The company has about 300 employees.
