FRANKFURT/LONDON (Reuters) - Several bidders, including Liberty Global, are preparing offers for TV production company Endemol Shine, maker of classic reality show ‘Big Brother’ and the dystopian ‘Black Mirror’ dramas, before an initial deadline next week.
ITV, RTL Group’s FremantleMedia and Lions Gate Entertainment are also eyeing Netherlands-based Endemol, sources close to the matter said, in a deal that comes as the rise of streaming giants Netflix and Amazon Prime has thrown the industry into turmoil.
The sellers are aiming for a price tag of between 2.5 and 3 billion euros ($2.9-$3.5 billion), said one banker familiar with the process, but this may prove ambitious with bids expected to be in the 2-2.5 billion euro range.
That works out at roughly 10 times core earnings before interest, taxation, depreciation and amortization (EBITDA), which a second banker said would be the most the seller could hope to get.
A source close to one potential buyer said Endemol’s catalog was heavy with ageing formats, making it potentially less attractive than buying small production outfits and working directly with top creative talent.
This person, who like other sources spoke on condition of anonymity, also said Endemol carried sizable debts and had already gone through a round of cost cutting, meaning the potential for synergies with an acquirer might be limited.
“We’re interested, yes, but skeptical,” this person said. “Is Endemol really a creative company any more? It’s financially weak.”
Endemol declined to comment. Its owners, private equity firm Apollo Global and Rupert Murdoch’s Twenty-First Century Fox, did not immediately respond to
