THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, May 23, 1996 TAG: 9605230339
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY DAVE MAYFIELD, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: 60 lines
International Family Entertainment Inc.'s president told shareholders Wednesday that there is ``nothing of any substance'' to support recent trade-press reports that the company is for sale.
But Timothy B. Robertson didn't dismiss outright such reports, saying that IFE is in discussions with numerous companies about a wide range of business opportunities.
And in a brief interview after the company's annual meeting, Robertson said he was ``flattered'' that IFE, the parent of The Family Channel, is reportedly craved by other larger entertainment companies.
Buzz about a potential sale of the Beach-based IFE was the main underplot at an otherwise-routine shareholders meeting that drew about 125 people to The Founders Inn.
A report by Advertising Age magazine earlier this week identified CBS, NBC and Sony Corp. as potential suitors for IFE. It was the second round of speculation about a potential sale of the company. In January, New York investor Mario Gabelli told the Barron's newspaper that he considered IFE a takeover candidate. Gabelli's mutual funds own a 13 percent stake in the company.
Any takeover would have to be agreed to by Tim Robertson and his father, IFE Chairman Pat Robertson, because they have voting control of the company. Also, Tele-Communications Inc., the nation's largest cable-TV operator, has first right of refusal on any sale of the Robertsons' shares. TCI's programming affiliate, Liberty Media Corp., is IFE's largest shareholder.
None of this came up at Wednesday's meeting, however. IFE executives instead spent most of their time trumpeting the company's recent programming successes.
Tim Robertson reported that the company's MTM Entertainment unit has syndicated its new fall offerings - an original dramatic series about the space program called ``The Cape'' and re-runs of the CBS hit series ``Dr. Quinn, Medicine Woman'' - across more than 90 percent of the UnitedStates. Generally, a 75 percent ``clearance'' rate is considered a success for program syndicators.
In addition, he noted that MTM has signed deals to produce new series for CBS, NBC and the United Paramount network, starting this fall.
He credited MTM President Anthony D. Thomopoulos for turning around the production company, which in its heyday in the 1970s and early '80s produced such classic series as ``The Mary Tyler Moore Show'' and ``Hill Street Blues.'' Thomopoulos and IFE Senior Vice President Gus Lucas have also greatly overhauled The Family Channel's lineup with what Robertson called ``higher-visibility event programs'' and ``star power.''
The result is a 46 percent increase in ratings for the channel over the past six months. And Robertson said IFE is optimistic about further ratings gains with its upcoming fall lineup, which will include a number of new series and movies, as well as re-runs of comedy routines featuring legendary late-night host Johnny Carson and comedienne Carol Burnett.
IFE had reported that its first-quarter net earnings were up 50 percent over the year before, entirely because of The Family Channel's gains. The company's other operations, which include a health and fitness cable-TV network and a chain of live-music theaters, all lost money in the period. by CNB