Parthenon CEO Carl Hall has told Licensing.biz that he expects more small to medium sized companies in our sector to start seeking external investment in order to grow.
Hall, who recently oversaw the teaming up of his firm Parthenon with Entara with backing from Arkaga Fund, said: "There is a limit to how much you can grow a company organically. At some stage, a level of external investment is always needed.
"In order for companies to retain the rights in the programmes they bring to the table and derive money from the exploitation of these rights, they need to be able to contribute an element of the budget upfront. Having access to external capital definitely helps to meet this requirement."
Following the deal with Entara, Hall's immediate plan is to take stock of both businesses and exploit any possible synergies. He will then look to rapidly grow both the kids and factual businesses organically and by strategic acquisition, across both production and rights exploitation.
"On the factual side, we will look to expand more into factual entertainment and broaden the genres covered into areas such as travel programming," he said.
"On the children's side, we will add to the animation slate, in addition to looking for or developing more live action drama with international appeal, like Roman Mysteries. Entara will continue to expand its licensing and merchandising property portfolio.
"The plan is to become a leading entertainment business and if that requires addition acquisitions in the future then this is something we will be considering."