Channel 4 acquires Scottish Production Company Firecrest Films
Channel 4 has made its first acquisition through its newly launched Creative investment Fund (CIF), purchasing a majority stake in Scottish production company Firecrest Films. The move marks the first time in its history that Channel 4 can own British intellectual property (IP) and aligns with its strategy to diversify revenue streams and bolster long-term sustainability.
Firecrest, based in Govan, Scotland, has a long-standing relationship with Channel 4, having produced programs such as Secrets of the Supermarket Own-Brands, Dispatches: The Truth About Nike and Adidas, and Rescue: Extreme Medics. The company is also known for the BBC’s Murder Trial series and has created content for Prime Video. Led by Nicole Kleeman and Iain Scollay, Firecrest currently employs nearly 100 staff and freelancers and prioritizes emerging talent, having provided 25 people with their first television jobs in the last three years.
“Over the last eight years our partnership with Channel 4 has taken us from a small regional indie to one of the UK’s most critically important documentary producers,” said Kleeman. “This new relationship with Channel 4 will give us the security to futureproof the business and continue to grow talent and tell stories.”
Channel 4 Interim CEO Jonathan Allan stated, “We have supported Nicole & Iain in their outstanding Scottish indie with their high-quality and critically acclaimed factual content for the last eight years. So I’m delighted that Channel 4 is now able to develop this crucial relationship with Firecrest Films through the first acquisition from the creative Investment Fund, supporting our new strategy to invest in and own IP. This strategy will enable us to diversify revenues and secure channel 4’s long-term sustainability through generating new income streams that are not wholly reliant on the advertising market.”
The acquisition follows Channel 4’s May proclamation that it would open the CIF to back production companies with commercial potential.While the network declined to disclose the total value of its indie investment fund at the time, it currently holds cash reserves of £111M ($151M).
Channel 4 already holds minority stakes in several production companies through its Growth Fund,including Warp Films,two Rivers Media,and Duck Soup. This move to acquire majority stakes brings Channel 4 in line with the BBC and ITV, both of which have been investing in British production houses for years through their respective studio arms. Allan acknowledged in may that Channel 4 would not be able to compete financially with larger rivals like ITV Studios.
The Firecrest investment was negotiated by Caroline Murphy,who has led the Indie Growth Fund since joining Channel 4 in 2019. Firecrest received advice from Helion Partners and lee & Thompson during the transaction.
The move has drawn some criticism from producers who have historically relied on Channel 4 commissions to build their businesses by retaining IP rights and selling content internationally. Channel 4 maintains that it was authorized by the UK government to launch an in-house production unit and acquire majority stakes in companies.
