Gannett Makes Entry Into Films With Top Bid for Laird Studios

Gannett, the nation’s largest newspaper publisher, offered the winning bid of $24 million on Monday for historic Laird International Studios, the Culver City lot where such classics as “Gone With the Wind” and “Citizen Kane” were filmed.

The Washington-based company said it plans to form a joint venture with former NBC Chairman Grant Tinker to produce television programs and feature films at the studio.

The venture will mark the return to independent production by Tinker, who as head of MTM Productions in the 1970s helped produce such hit series as “The Mary Tyler Moore Show,” “Lou Grant” and “Hill Street Blues.” He retired as NBC chairman last summer after taking that perennial also-ran network to the No. 1 spot in prime-time ratings.

It will also give Gannett, which owns a number of TV and radio stations, its first major interest in film production.

Representatives of Gannett successfully outbid a number of others for the 14-acre studio during an auction in West Los Angeles, including former 20th Century Fox owner Marvin Davis, and representatives of Sunset Gower Studios and Raleigh Film & Motion Picture Studios.

Gannett will formulate plans to renovate the 68-year-old studio and will announce details of the joint venture with Tinker in January, spokeswoman Sheila Gibbons said.

John J. Curley, president and chief executive of Gannett, said in a prepared statement that since the company owns eight television stations “it’s natural for us to expand into entertainment programming and we are delighted to team up with Grant Tinker.”

Gannett also owns 18 radio stations and publishes 93 daily newspapers, including USA Today.

Sol Kessler, Tinker’s accountant who bid for Gannett at the auction, said Tinker had no immediate comment other than “we’re delighted about it.”

Curtis B. Danning, bankruptcy trustee for Kings Point Corp., which has owned the studio since 1977, said before the auction that he thought bidding could reach $30 million. “It was in the lower range of what we expected,” Danning said. “We don’t know (how high) the successful bidder would have gone had he been pushed.”

Renovation Affected Bidding

Some observers said the bidding was affected by the high cost of renovating the studio to industry standards and those set by Culver City officials. Estimates by movie industry analysts and others for improvements to the studio, including demolishing and refurbishing buildings, have ranged from $6 to $22 million.

“Everyone has their limits,” said Davis when asked why he did not bid higher. Davis owns 10% of Aaron Spelling Productions, which produces its TV shows at Warner Hollywood Studios. Some in the movie industry speculated that Spelling would move to Laird if Davis bought the studio.

Davis, who sat next to producer Spelling during the auction, offered a high bid of $20 million. But when Gannett bid $24 million, Spelling shook his head at Davis and the bidding ceased.

The auction was scheduled after Kings Point filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code.