'Cosby' Producers Launch New Media Venture Fund.

Carsey-Werner-Mandahach Co., the television production company that created hit shows such as "Roseanne" and "The Cosby Show," has launched an investment subsidiary devoted to investing in media companies.

The new subsidiary, called CWM Ventures, is being headed by Michele DiLorenzo, who joined Carsey-Werner-Mandabach in February from Paul Allen's Vulcan Ventures Co.

CWM Ventures will initially be funded exclusively by its parent company, although DiLorenzo declined to comment on how much money has been committed.

"There are a lot of areas where we can invest," DiLorenzo said. "We are looking to expand our international efforts by investing in third-party programming, and new channels and networks that are being formed abroad."

She further said that the Studio City-based company was driven to create the new division by the positive experience that CWM has had running its 6-year-old distribution division and in helping to launch the women's cable network, Oxygen Media Inc.

"The company wasn't looking for the next 'Weakest Link,' but will pursue a wide range of opportunities in all segments of the entertainment industry," she said.

CWM Ventures plans to make additional investments and form strategic partnerships in areas ranging from production to technology.

"Carsey-Werner-Mandabach recognizes that this is a unique moment in television, with changes being driven by forces including the deployment of various digital technologies and increased advertising clutter and consolidation," she said. "We saw the opportunity for CWM Ventures to take a leadership position in pioneering new models for the evolving TV business."

Big companies already established and successful in their field -- like Carsey-Werner-Mandabach is in the entertainment field -- have a tremendous advantage when they form venture arms, said Dave Lavinsky, president of L.A.-based media research firm Growthink Inc. One of the more significant advantages is that such companies have the ability to serve as customers for the service or product they've invested in, thus ensuring revenues for the venture.

Instant credibility

They also provide instant credibility to the startup venture arm in their market space, and have strong and current relationships with key industry players, said Lavinsky. CWM Ventures has established strong relationships with TV networks and with fellow production companies, after having had television shows on the primetime schedule for 18 consecutive years.

For Marcy Carsey, CWM Ventures is about creating a new direction for the company that she and partner Tom Werner have built into an industry powerhouse. The two partners, each of whom are among the richest 50 residents of Los Angeles, brought on a third partner, Caryn Mandabach, in February -- and changed the name of their company to reflect that move.

"The first step was Caryn Mandabach becoming a full partner, and Michele (DiLorenzo) joining us is step two," Carsey said. "Michele has built her career on seeing industry trends early and then developing and executing original approaches to capitalize on them."

CWM Ventures has already made an investment of an undisclosed amount in Oxygen, alongside co-founders Geraldine Laybourne and Oprah Winfrey. So far, there don't seem to be any other deals in the works.

"Our investment in Oxygen is an opportunity to create a brand that has meaning and resonates with the women of this country," said DiLorenzo. "With the recent addition of Oxygen by Time Warner Cable, we expect to reach 45 million homes by next year."

She added that the investment in New York-based Oxygen was not part of a structured financing round, but rather an opportunity to work with Winfrey and Laybourne. It's worth noting that this is not the first time that DiLorenzo has been involved in securing financing for the financially troubled Oxygen network. While with Vulcan, she helped orchestrate three rounds of funding, including $100 million last December.

"They've hired the perfect person to head the fund," said David Cremin, a partner with Zone Ventures. "Michele has plenty of experience at Vulcan developing strategies for investing in cable and Internet content."

Although half-hour sitcoms may not be where the CWM Ventures' money is going, Mandabach said the company is fortunate to have strength in prime-time television because it has given the company a financial base to spring from. She added that, on the production side, such traditional television efforts would continue.

Upcoming productions for Carsey-Werner-Mandabach include "You Don't Know Jack," a game show on ABC that is slated to star Paul Reubens, and "The Downer Channel" on NBC with executive producer Steve Martin.

The company currently produces "That '70s Show," "Grounded For Life" and the recently cancelled "3rd Rock From The Sun." Besides "Roseanne" and "The Cosby Show," CWM's distribution subsidiary syndicates such shows as "A Different World," "Grace Under Fire," and "Cybill."

Founded in 1981, CWM has produced shows that are seen by some 65 million viewers each week in the United States. The company also distributes programs to 175 countries in 50 different languages.