Buoyant Time Warner makes billion Euro bid for Endemol

Editor ©RapidTVNews | 07-11-2011

Only days after reporting strong third quarter results, where content has been a key component, Time Warner Inc. is now primed to buy production house Endemol.
Despite its fame from producing global smash hits Big Brother and Deal Or No Deal, Endemol is said to be ridden with debt to the tune of around €2.8 billion and has been the subject of a number of prospective buy out rumours from a number of months. Yet it also a fine generator of income and is expected to bank around $€140 million in sales by the end of 2011.
In August 2011 the company was linked with a sale to ITV in conjunction with Silvio Berlusconi's Mediaset a co-owner of the firm. The other owners include Goldman Sachs's Capital Partners and Cyrte, the investment vehicle of founder John de Mol.

In this latest development, Time Warner is said to have made a billon Euro opening bid for the Dutch company. The approach was confirmed by Endemol spokesman Charlie Armitstead who told the Guardian newspaper: "We have received an approach; it will now be put forward to Endemol's lenders to consider…It doesn't come as a surprise – Endemol is an attractive asset."

Time Warner is said to be keen to close the deal before a bidding war starts and to capitalise on its current position of corporate strength. In the quarterly results revenues grew 11% from the same period in 2010 to $7.1 billion, reflecting higher earnings at the Filmed Entertainment and Networks segments. Adjusted operating income and operating income each grew 18% to $1.6 billion, due to increases at the filmed entertainment segment.