Hit boss leaves following digital deal
Hit Entertainment parted company with its chief executive today after sealing a “transforming deal” giving greater US television coverage to Bob the Builder.
The children’s entertainment group said it required a leader with “different skills” to Rob Lawes, who quit as the group announced a 43% fall in profits to £14.6m (€21m) and warned of little growth over the next 12 months.
Mr Lawes had been instrumental in the deal unveiled today for Hit to take a 30% stake in a new 24-hour pre-school channel on digital television in the US.
Hit will invest $32m (€25.5m) in the channel, which involves cable firm Comcast, broadcaster PBS and Sesame Street creator Sesame Workshop.
The channel – featuring Hit’s other children’s characters such as Thomas the Tank Engine and dinosaur Barney – is expected to be profitable in the third year following its launch in September 2005.
In addition to direct input into scheduling and transmission of its TV shows, Hit will also gain access to subscription, sponsorship and advertising revenues.
Peter Orton, chairman and founder of Hit, said the decision to sever ties with Mr Lawes was linked to the US deal.
He said: “As Hit enters this new stage in its development it requires a chief executive with different skills to manage the growth of the business.”
