A management buyout has taken place at Setanta Television Ltd, with founders Mr Leonard Ryan and Mr Michael O'Rourke resigning from the firm to concentrate on their Irish sports channel, The Irish Times has learned.
A deal believed to be worth between €1 million and €2 million has been agreed between the two men and a three-person MBO team. Setanta Television, one of the largest of the Setanta firms, is an independent production company, which produces programmes mainly for the Irish market.
Among its most high profile productions are the GAA show Breaking Ball, the documentary Marooned, which followed Westmeath manager Mr Paidi O'Shea through the year, and the annual Entrepreneur of the Year.
The independent production sector in Ireland is said to be worth €30 million, but if firms can export their material into Europe or the US the return can be considerable.
Mr Mick Pilsworth, the former chief executive of Chrysalis Television, who guided Chrysalis to become Britain's biggest independent TV production company, is leading the management buyout. The other two members are Mr Cormac Hargaden and Ms Trisha Canning, who work in senior positions at Setanta.
Mr O'Rourke and Mr Ryan are the founders and largest shareholders in the various Setanta companies. In Ireland, their energies will now be directed towards making a success of the Setanta Sports channel, along with managing director Mr Niall Cogley.
The name Setanta Television Ltd is being scrapped and a new name and brand, Motive Television, comes into existence. Mr Pilsworth has been appointed chairman. Under the new team, the firm will attempt to increase its international presence.
Mr Ryan said the deal had to be done for one reason. "With the launch of our new sports channel, Setanta Sports, in Ireland, we have become a broadcaster here, and, sadly, we have realised that it will not be possible to retain our independent programme production activities."
Mr Pilsworth said the new entity had great potential to expand its operations both domestically and internationally. He said changes in Britain meant that increasingly independent production companies retained ownership of their material.
He said the companies could get their assets back once they had been transmitted once by a broadcaster. Until now the rights and royalties had remained with the broadcasters. "We remain confident those changes will soon become relevant to the Irish market as well," he said.
