• by David Goetzl  @dgoetzl, August 2, 2007

Reveille, the high-profile production studio launched by Ben Silverman, will continue without its driving force--and without a stake held by Barry Diller and his publicly traded IAC. In the midst of the shakeup caused by Silverman leaving Reveille to move to NBC Universal, IAC unwound its interests in the successful studio and pocketed $8.2 million in the process, according to the company.

The move comes five years after Diller and IAC predecessor USA Entertainment provided seed money and took an undisclosed investment in the production house that promised to usher in a new era of advertiser/producer cooperation in show development.

But with Silverman, the driving force behind hits such as NBC's "The Office" and ABC's "Ugly Betty," shifting to head programming at NBCU in June, Diller apparently decided the charismatic executive was Reveille's top asset and opted to drop IAC's stake.

IAC's withdrawal from Reveille is a potential blow to the studio as it plots a future sans Silverman. It named a new four-person executive team in July. Aside from any financial repercussions, an effective no-confidence vote from longtime Hollywood player Diller could hurt its standing as it seeks to attract projects to pitch networks and network interest thereafter.

However, IAC's involvement with the studio isn't severed completely. It retains some rights to profit from series produced--and other deals clinched--during Silverman's tenure going forward. Those rights, described by one source as "minimal," likely cover the continued windfall expected from "The Office," "Betty" and other series, including NBC's "The Biggest Loser," which is heavy on advertiser integration.

That scenario appears similar to the one Silverman put together when he assumed his new post. He will continue to benefit from the success of shows produced while at Reveille, but will have no interest in any of the studio's future ventures.

In a conference call Tuesday to discuss IAC's second-quarter results, CFO Thomas McInerney said the company, with assets such as HSN, Ask.com and Ticketmaster, pocketed $8.2 million for "our previous" investment in Reveille.

Based on information provided by IAC, it's possible the payment is early compensation against future profits IAC may be entitled to from its interests in future results from series produced during the Silverman era. IAC described it as "reimbursement for advances related" to the Reveille involvement.

An IAC representative declined comment; calls to Reveille were not immediately returned, nor did its representatives provide immediate comment.

The exact level of IAC's stake in Reveille is unknown, although Silverman indicated when he took the NBCU position that control of the company rested with him. He said he did not want to sell Reveille to NBCU or another party when he assumed his new position.

Diller withdrew future involvement even after Reveille received an extension of its first-look deal with NBCU as part of the Silverman negotiations with the GE-owned conglomerate.

Once Silverman signed on at NBCU, there were various reports that Diller was also prepared to hire Silverman. Under one report, the IAC Chairman-CEO was looking to boost his company's stake in Reveille and bring Silverman aboard to oversee content on IAC properties such as Match.com, CollegeHumor.com and new ventures in online video. But those prospects apparently fell apart, and IAC moved to drop its active investment entirely.

It's unclear how a role for Silverman at IAC would have worked with the company having brought veteran Michael Jackson (who oversaw the USA and SciFi networks) on board to head programming a year ago. Jackson has a long relationship with Silverman, going back to assisting in the formation of Reveille.