Lionsgate's syndie plan

Studio puts up $27 mil for Debmar-Mercury

By JOHN DEMPSEY

Lionsgate has charged into the TV syndication biz, ponying up $27 million to buy one of the most active independent distributors, Debmar-Mercury.

The two companies are already interlinked in a number of ways. Ira Bernstein, one of the two principals in Debmar-Mercury, has served as prexy of worldwide TV for Lionsgate, and he and partner Mort Marcus will distribute Lionsgate series "The Dead Zone" to TV stations in rerun syndication for kickoff in fall 2007.

Debmar-Mercury also syndicates a Lionsgate pic package, as well as reruns of "South Park" (off-Comedy Central) and the Hallmark/Jim Henson "Farscape" series (off Sci Fi Channel). The Revolution Studios films also go out through Debmar-Mercury in two separate syndication packages. On its own, Lionsgate has nine primetime-TV series this year on broadcast and cable.

Potentially the biggest project in the Debmar-Mercury portfolio is "House of Payne," an original sitcom written, produced and directed by Tyler Perry. First 10 half-hour episodes have scored solid ratings in a test on TV stations in 10 major markets this summer.

Debmar-Mercury is negotiating with the Fox-owned TV stations on a deal that would funnel 65 new episodes, plus the 10 in the just-completed test, to the Fox O&Os in fall 2007 for stripping. Debmar-Mercury would guarantee another fresh 25 half-hours for delivery in fall 2008.

Lionsgate distributed the movies starring Perry, "Diary of a Mad Black Woman" and "Madea's Family Reunion"; a third, "Daddy's Little Girl," is slated for theatrical release in February. Perry also directed and produced the pics.

Marcus said other companies have explored buying Debmar-Mercury in the last six months or so, but Lionsgate "is giving us complete independence. We don't even have to move offices. And we now have access to capital."

Marcus is based in Los Angeles, Bernstein in New York.

Debmar-Mercury will use $5 million of the $27 million purchase price to pay down its debt.

Bernstein said that when Debmar-Mercury negotiates to buy a TV series, it will now be able to take on ancillary rights such as domestic video and worldwide syndication because Lionsgate is active in those areas.