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Eyes are on a sale of Big Brother creator Endemol: Reuters
Posted on Thursday, 05 July 2018 11:57
Final offers for Dutch television content producer Endemol Shine are expected to be tabled by the next week, with a number of interested suitors already lined up at the door, Reuters reported.

Citing people familiar with the situation, the news provider observed Apollo Global Management and Twenty-First Century Fox are looking to sell the company for between EUR 2.50 billion and EUR 3.00 billion.

Liberty Global, ITV, RTL Group, FremantleMedia and Lions Gate Entertainment, among others, are said to have eyes on the Big Brother and Black Mirror creator, sources noted, adding the sellers have appointed Deutsche Bank and Liontree to advise on a deal.

Speculation regarding the potential sale of Endemol start in April this year, with reports suggesting the group is up for grabs and a number of television companies are interested.

In June, CNBC observed that a disposal could be worth up to USD 4.00 billion, including debt.

Fox recently passed up the opportunity to acquire Apollo’s 50.0 per cent interest in Endemol, the television producer behind MasterChef, as it did not want to interfere with its planned sale to the Walt Disney Company.

Disney recently increased its offer to pick up Fox to USD 85.10 billion; this deal has been signed off by some regulators and is expected to close soon.

Bankers close to the potential sale of Endemol observed that a transaction comes as television producers are looking to boost their content offerings following the rise of streaming giants Netflix and Amazon Prime.

Additionally, one of these insiders suggested bids are expected to come in at between EUR 2.00 billion and EUR 2.50 billion, or roughly 10.0x the target’s earnings before interest, taxes, depreciation and amortisation.

Endemol has a heavy catalogue of aging shows and a sizeable debt pile, a Reuters source said, adding this could make it less attractive to suitors.

While some of the company’s content may attract an older generation such as Deal or no Deal and Big Brother, the group is also the creator of popular show Peaky Blinders and last year had some 800 productions, airing on more than 287 channels worldwide.

One banker told Reuters that a potential buyer could potentially seek a partnership agreement with Fox, whereby the Disney-acquired business retains a minority stake in Endemol.

© Zephus Ltd