Member Article

British television production studio deal is ‘first of several’ major investments for London’s Gate Ventures

Newly formed investment company Gate Ventures Plc has gained a stake in Infinity Creative Media Limited, a British television production studio founded by Russ Lindsay - former manager of Ant & Dec, Simon Cowell, Phillip Schofield and Piers Morgan.

The London-based company has reached full commercial terms to invest £2.6m in Infinity, giving Gate Ventures a 20% equity share at a pre-investment valuation of £13m in Infinity with an option to acquire a further 5% stake.

A down-payment of £100K has been made as part of the terms of a signed Memorandum of Understanding, and the commercial terms are proceeding to formal contract.

Infinity is producing a number of investor funded 13 one hour (“13x1”) TV magazine programmes for global distribution, where the commercial IP remains vested entirely with Infinity and its investors.

Infinity has four 13x1 original television formats currently in production, these being The Classic Car Show, The Wine Show, The Art Show, and The Luxury Lifestyle Show. Further series, including The Football Show and The Theatre Show, are currently in development.

Each series produces numerous income streams for Infinity such as an executive production fee and sales commissions amounting to over £450k per series, with potential for additional on-going revenues, on top of the value created from the format’s original IP.

Geoff Morrow, Chairman of Gate Ventures PLC, said: “Infinity is an exciting business with excellent and experienced management which has the drive and enthusiasm to make Infinity one of the top television and film producers in the UK.

“The intention is that apart from its current normal distribution networks, Infinity will also take advantage of Gate Ventures’ expertise and connections in China, to sell its production content to TV stations and other media distribution platforms.

“This important major investment for Gate Ventures is the first of several, in line with its investment strategy. The Company is already in detailed discussions in relation to three other media investments, with commercial terms agreed in principle.”