A production company backed by James Corden, which is behind plans for a £450m film studio in Sunderland, is to merged with a business founded by LeBron James.
The merger between The SpringHill Company and Fulwell 73, which is expected to complete in the coming weeks, will be backed by Fenway Sports Group, RedBird Capital Partners, UC Investments, Nike, Epic Games, Main Street Advisors and Eldridge Industries.
As part of the deal, existing shareholders will invest $40m (£31.6m) of primary capital to fuel the companies’ growth plans.
Fulwell 73 was founded 2005 by brothers Gabe and Ben Turner, Leo Pearlman and Ben Winston while James Corden joined in 2017.
The business, which has offices in London and LA, has made the likes of The Kardashians, Friends: the Reunion, and Sunderland Til I Die while it is behind the final Gavin and Stacey episode which is due to air this Christmas.
Fulwell 73 also behind plans to build one of the largest film studios in Europe. Crown Works Studios in Sunderland was granted planning approval in March and is expected to cost £450m.
The project is a joint venture between Fulwell 73 and Cain International and will feature 19 sound stages, offices, workshops, a vendor village and a backlot.
James Corden’s Fulwell 73 on loss-making run
Earlier this year, City AM reported that Fulwell 73 made a pre-tax loss of £12m in the 12 months to 31 July, 2023, after also losing £11.2m in the prior 12 months.
The business last made a pre-tax profit when it achieved a total of £1.3m in the year ending July 2021.
However, Fulwell 73 said one of its main key performance indicators (KPIs) – gross profits – increased from £16.5m to £25.1m.
Its loss came despite the firm’s turnover increasing from £78.6m to £94.4m, according to the accounts filed with Companies House.
In a statement announcing the deal, the new group said its initial business focus will be in television and film content, digital content through its owned network business, live events and brand strategy via The SpringHill Company’s New York-based brand consultancy firm, Robot.
In a joint statement, Fulwell 73 partners Ben Winston, Leo Pearlman, Ben Turner, Gabe Turner and James Corden said: “Since Fulwell 73’s inception, we’ve tried to make content that entertains, informs, and excites, while sparking conversations around the world.
“That’s the mantra at The SpringHill Company as well. Together, we’ll continue doing what we do best, and now we’ll do it as a global entertainment studio with more to offer our partners.
“We recognise the major shifts underway in entertainment and the world and we’re excited to build a company with The SpringHill Company that’s designed for the future.”
Maverick Carter, chief executive of The SpringHill Company, added: “At The SpringHill Company, we’ve always given athletes, artists and brands a platform to tell meaningful and diverse stories in all forms and formats, from digital-native shows and IRL [in real life] experiences to streamed series and theatrically released movies.
“We found like-minded partners in Fulwell 73, partners who understand this business and the critical importance of building opportunities for talent across the media and entertainment landscape.
“Like everyone, we see the ways audience behavior is shifting and the demands on storytellers are evolving.
“We are excited for those changes and feel ready to adapt alongside the Fulwell 73 team.”
The SpringHill Company was founded by LeBron James and Maverick Carter and makes feature films and TV series, YouTube shows, live tours, apparel and consumer goods.
The SpringHill Company was advised by LA-based media and entertainment investment and advisory firm Main Street Advisors as well as law firm Gibson, Dunn & Crutcher.
Fulwell 73 was advised by the London-based investment team at NewShore Partners as well as Frankfurt Kurnit Klein & Selz for United States legal and tax matters and Wiggin and Saffreys for United Kingdom legal and tax matters.