LONDON -- Dutch billionaire TV producer and Endemol co-founder John de Mol has joined forces with Italy's Mediaset and a group of financiers to buy back the "Big Brother" production company from Telefonica for €3.4 billion ($4.6 billion), it was announced Monday.
The consortium is offering €2.6 billion ($3.5 billion) in cash for a 75% stake in Europe's second-biggest international production venture, and will offer investors a minimum of €25 ($33.90) per share for the outstanding balance, marginally above the €24.65 ($33.38) the Amsterdam-listed stock traded at after the news was announced.
The three-way investment group includes De Mol's investment vehicle Cyrte Fund II, Mediaset's Mediacinco Cartera SL and Goldman Sachs fund GS Capital Partners VI Fund.
Telefonica acquired Endemol in a $5 billion deal in 2000 as part of a major expansion by the telecoms group into media and Internet assets spearheaded by former CEO Juan Villalonga. The strategy was reversed by his successor, Cesar Alierta, who has been trying to offload Endemol since last year.
The consortium is offering €2.6 billion ($3.5 billion) in cash for a 75% stake in Europe's second-biggest international production venture, and will offer investors a minimum of €25 ($33.90) per share for the outstanding balance, marginally above the €24.65 ($33.38) the Amsterdam-listed stock traded at after the news was announced.
The three-way investment group includes De Mol's investment vehicle Cyrte Fund II, Mediaset's Mediacinco Cartera SL and Goldman Sachs fund GS Capital Partners VI Fund.
Telefonica acquired Endemol in a $5 billion deal in 2000 as part of a major expansion by the telecoms group into media and Internet assets spearheaded by former CEO Juan Villalonga. The strategy was reversed by his successor, Cesar Alierta, who has been trying to offload Endemol since last year.
- 5/15/2007
- The Hollywood Reporter - Movie News
AMSTERDAM -- Spanish telecom giant Telefonica on Friday said it wants to sell its stake in "Big Brother" producer Endemol and has retained Lehman Brothers as its financial advisor and asked Merrill Lynch to offer finance facilities to the purchaser.
Telefonica said that, if it is to sell its 75% stake in the Dutch entertainment company, it will expect the buyer to make a public offer for the remaining 25% of the shares. A bid for all of Endemol's share capital could reach about £2 billion ($3.8 billion), analysts believe.
Telefonica bought Endemol for $5.3 billion in March 2000 at the height of the technology bubble, under then-chairman Juan Villalonga. Shortly after taking the helm at Telefonica in 2002, current chairman Cesar Alierta said the TV production house was not a core asset of the company and that he was open to offers, though in no hurry sell.
Earlier this week, the company had "no comment" on whether the drop in Endemol's stock price, along with the slide in worldwide markets, would affect its plan to sell the asset.
Telefonica said that, if it is to sell its 75% stake in the Dutch entertainment company, it will expect the buyer to make a public offer for the remaining 25% of the shares. A bid for all of Endemol's share capital could reach about £2 billion ($3.8 billion), analysts believe.
Telefonica bought Endemol for $5.3 billion in March 2000 at the height of the technology bubble, under then-chairman Juan Villalonga. Shortly after taking the helm at Telefonica in 2002, current chairman Cesar Alierta said the TV production house was not a core asset of the company and that he was open to offers, though in no hurry sell.
Earlier this week, the company had "no comment" on whether the drop in Endemol's stock price, along with the slide in worldwide markets, would affect its plan to sell the asset.
- 3/10/2007
- The Hollywood Reporter - Movie News
MADRID -- Spanish Internet portal Terra is set to sell off Lycos at a cost between $95 million and $125 million -- 1% of what it originally paid for the U.S.-based company in 2000 -- according to a report the company submitted to Spanish stock authorities on Wednesday. According to Spanish news reports, the Korean Internet group Daum Communications Corp. is the main contender to buy Lycos. A Terra spokesperson would not confirm the company was in negotiations with Daum or any other potential buyer. Telefonica, which owns 75% of Terra, bought Lycos at the height of the high-tech bubble for $12.5 billion under the guidance of then-president Juan Villalonga.
- 7/30/2004
- The Hollywood Reporter - Movie News
MADRID -- Spanish judge Baltasar Garzon, acting on the prosecutor's request, dropped the investigation into Telefonica's purchase of European television producer Endemol on Friday. Garzon said there is no indication of wrong doing in spite of the "apparent" excess of the amount paid. Garzon has questioned former Telefonica chairman Juan Villalonga and Telefonica's present chairman Cesar Alierta, in addition to Endemol founders John de Mol and Joop van der Ende during his inquiry into why Telefonica paid $5.3 billion to acquire the producer in May 2000. Prosecutors had earlier alleged that personal gain was the motive for Telefonica, a public company, to pay so much money to acquire the Holland-based company.
- 11/14/2003
- The Hollywood Reporter - Movie News
MADRID -- A Spanish judge, acting Friday on the request of the prosecutor, dropped the investigation into Telefonica's purchase of European television producer Endemol. The judge, Baltasar Garzon, said in a staterment that there is no indication of wrongdoing in spite of the "apparent" excess of the amount paid in the acquisition. Garzon has questioned former Telefonica chairman Juan Villalonga and Telefonica's present chairman, Cesar Alierta, in addition to Endemol founders John de Mol and Joop van der Ende during his inquiry into why Telefonica paid $5.3 billion to acquire the producer in May 2000. Prosecutors had alleged that personal gain was the motive for Telefonica, a public company, to pay so much money to acquire the Holland-based company.
- 11/14/2003
- The Hollywood Reporter - Movie News
Testimony continued Thursday in the so-called Endemol case in Spain, in which Judge Baltasar Garzon is investigating charges brought by the anti-corruption prosecutor that Spanish telecom Telefonica paid an inflated price for European television producer Endemol in 2000. Prosecutors allege Endemol's share price was altered to benefit top officers of the companies, including Telefonica's then-president Juan Villalonga and Endemol president Jon de Mol, at the expense of the shareholders. It was not known at press time who testified Thursday, but Villalonga, who masterminded the deal, on Wednesday denied that the price was above the market cost for the creator of Big Brother.
- 3/14/2003
- The Hollywood Reporter - Movie News
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