In This Article:
(Repeats from JULY 4, no changes to text)
* Liberty Global CEO - may bid via joint venture with Discovery
* ITV, RTL, Lionsgate and Banijay in the frame - sources
* Sellers seeks 2.5-3 billion euros for Endemol
* Bids seen in 2-2.5 billion euro range, roughly 10x EBITDA
* First-round bid deadline falls next week
By Arno Schuetze, Douglas Busvine and Pamela Barbaglia
FRANKFURT/LONDON, July 4 (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 catalogue 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 sceptical," 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 requests for comment.
HUNGER FOR QUALITY
The sale comes as traditional TV players need more quality scripted serials to fill their fledgling video-on-demand services, with binge-watching online viewers less likely to be satisfied with their staple fare of reality and lifestyle shows.
It also creates an opening for Liberty, the U.S. telecoms and pay-TV company built by John Malone, to leverage its distribution expertise and assets.
Liberty may bid for Endemol via All3Media, the production joint venture it owns together with Discovery Inc, CEO Mike Fries said at a recent industry gathering.