October 2014 54 D’Halluin’s Zodiak one by one the founders of the acquired companies left what became Zodiak Media — and late in 2013 owner De Agostini Communications put the group under the management of Marc-Antoine d’Halluin (pictured on the front cover) — Zodiak took, in the words of its chief of staff and CEO of Zodiak U.K. Rod Henwood, “a new direction.” Four years after its latest report, VideoAge returned to review the group’s new strategy with French-born CEO d’Halluin, who — considering his expertise in content distribution (Sony Pictures), kids TV (Saban and Fox Kids), channels (Canal Plus Nordic and Orbit Showtime Network), local production (Yellow Bird, now owned by Zodiak) and investments (Rubis Media Partners) — stated, “between me and Zodiak there is an interesting fit,” since those are the key business areas for Zodiak Media. In 2009, VideoAge interviewed Lorenzo Pellicioli, CEO of the Novara, Italy-based De Agostini Holdings, a 113-year-old privately held multibillion dollar financial conglomerate that owns De Agostini Communications. At that time he said, “We have chosen to apply a ‘federal government’ model: the main role attributed to Zodiak will be one of central coordination and control, and of generating creative momentum to encourage the circulation of ideas within the field of the companies operating in the various countries. The latter will be responsible for individual productions and relations with local broadcasters.” “That model made sense at that time,” commented d’Halluin. “Today the group operates more like a ‘confederation,’ with the center playing an active role to ensure a strong coordination.” According to d’Halluin, the strong center combined with an international development board (IDB) comprised of 10 of Zodiak’s producers who meet every two months, ensure that three to four of their locally popular formats can become international successes. When asked if Zodiak’s large number of companies in various countries was a precise design, Pellicioli answered: “No, it is only the result of our acquisitions. Now we have to main areas of investments — gaming, finance and media and communications — and its net asset value (value of assets less liabilities) is more than three billion euro. To acquire all the companies grouped under Zodiak, De Agostini invested more than 620 million euro or U.S.$830 million (plus a golden parachute for Frank). Reportedly, De Agostini acquired Zodiak for 137 million euro, the RDF acquisition was valued at 188 million euro, Magnolia was ultimately acquired for 40 million euro and Marathon for 250 million euro. In comparison, in 2007 Spain’s Telefonica sold 75 percent of Endemol — a group of 80 companies operating in 26 countries — for 2.63 billion euro. As they stated in 2010, Zodiak’s goal was to challenge FremantleMedia, the London-based TV group of Germany’s RTL, which owns 13 companies and operates in 28 territories. Now, according to d’Halluin, Zodiak sees itself as “uniquely independent” and focusing on their three main lines of business: non-scripted, which generates 70 percent of revenues; scripted, with 20 percent and kids with the remaining 10 percent. However, the challenge still remains when it comes to RTL-dominated Germany where, in the words of d’Halluin, Zodiak hopes for “an organic growth, rather than pursuing an acquisition.” DS rationalize the organization.” He added, “We aim, over the next three years, to become one of the main international players in the content market, with a turnover of 800 million to 1 billion euro and an EBITDA of 130 million to 150 million euro. If we achieve these objectives, we will also be able to list Zodiak on the stock exchange.” “It is always a possibility in the future,” stated d’Halluin, “but [being on the stock exchange] is not something we’re actively working on.” Though he quickly added, “De Agostini’s board is the type one wants to work for.” It is a board that doesn’t interfere, though it speaks with CEO Pellicioli on a regular basis. As per last year, the turnover of Zodiak Media was 542 million euro. It developed a catalog of 20,000 hours (60 percent coming from thirdparty programming) and in 2013 alone generated 6,000 hours of production for more than 200 channels worldwide. In terms of reorganization, Zodiak U.K. CEO Henwood explained that under the second wave of management the Zodiak Media group has now resolved its “integration problems” and has a leaner structure with 10 divisions coordinating 40 companies operating in 16 countries, including Zodiak Rights, its international distribution arm (under newCEOSteveMacallister),whichon its own in 2013 generated 60.5million euro in revenues. The Swedish company Zodiak Television was acquired by De Agostini in 2008 from Patrick Svensk. Subsequently, the company became Zodiak Entertainment with the acquisition of several companies, including France’s Marathon from Pascal Breton, the U.K.’s RDF from David Frank and Italy’s Magnolia from Giorgio Gori. All four formed a strong-willed management group protective of their own turf, but left a weak central base — but this problem no longer exists under Zodiak Media CEO d’Halluin However, the group’s headquarters are still shared between Paris and London, even though d’Halluin is mostly based in London, which is also the headquarters of Zodiak Rights. De Agostini is controlled by the Drago and Boroli families with 5.3 percent owned by a group that includes Pellicioli and the same two families. It has three (Continued from Cover) Grant Ross, co-chairman of the IDB Joel Karsberg, co-chairman of the IDB (CCO Zodiak U.S., formerly Mastiff) Rod Henwood, CEO of Zodiak U.K. Steve Macallister, CEO of Zodiak Rights
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