MCA Acquires Big Stake in Production Firm

In the latest attempt to bolster its ailing television business, MCA Inc. has bought a substantial interest in Brillstein-Grey Entertainment, a production company whose shows include “NewsRadio” and “The Jeff Foxworthy Show” on the NBC network and “The Naked Truth,” which aired last season on ABC.

Under the deal, MCA will also buy half interest in Brillstein-Grey’s fledgling movie operation, which next month will release “The Cable Guy,” starring Jim Carrey.

Although details of the transaction were not disclosed, sources say MCA is paying about $100 million for these interests, with an estimated $79 million of the total for the TV stake.

Television sources characterize the price as steep, considering the unproven success of many shows on Brillstein-Grey’s slate. Yet it seems in line with the roughly $100 million that ABC is believed to have put up in 1994 for a 50% stake in television shows created by Brillstein-Grey over five years. The MCA deal is longer-term.

Under the deal announced Tuesday, consummating months of negotiations, Brad Grey, chairman and chief executive of Brillstein-Grey, retains an equity interest in the TV operation and an estimated 50% stake in the movie company. He also retains management control, as chairman of both entities.

“I still have the controlling voice, I’m just bringing in partners and making a smart financial deal to continue to grow the company,” said Grey, 38, whose talks with MCA began last summer, when the studio was looking for an executive to run its TV operation. “MCA has deep pockets and a worldwide distribution system.”

Unaffected by the MCA transaction is Brillstein-Grey Enterprises, the talent management agency founded in 1967--on which the movie and TV operations were built. ABC said its investment in Brillstein-Grey is also not affected, although sources say Walt Disney Co.--which now owns ABC--is enamored neither with the economics of the ABC investment nor with the fact that they are now in partnership with a rival studio.

Under the deal, Bernie Brillstein, the 65-year-old founding partner of the movie and TV company and the management firm, will be bought out by Grey. He said he will continue as a consultant.

“It’s been some ride and I’m not riding off into the sunset yet,” Brillstein said. “Who knows where this will lead? When you close one door, you open another. After 40 years in the business, I wanted to pull back a little. I wanted to concentrate on movies.”

TV sources said MCA is paying a premium to shore up its weakness, particularly in situation comedies. The studio’s blockbuster comedy, “Coach,” is ancient by TV standards, going into its ninth season on ABC. The company has had better luck with dramas, although its biggest hit, “Murder She Wrote,” is being retired after 12 seasons.

The studio needs some fresh hits, and as a result, turned out about triple the number of pilots this year over last, with four of the 13 expected to be picked up so far.

Since it was acquired last year by Seagram Co., MCA has restocked the management of its TV business, which was considered to be among its worst-performing divisions. It hired Gregory Meidel, formerly president of Fox Television, as chairman of MCA Television and more recently added James McNamara, chief executive of New World Entertainment, to oversee worldwide distribution.

Brillstein-Grey could well help jump-start its efforts. “This will catapult us to the top in comedy sitcoms and that’s where the end of the rainbow is,” Meidel said, adding that Grey had signed on a first-rate team of comedy stars, writers and directors.

Times staff writer Jane Hall in New York contributed to this story.