The sellers are aiming for a price tag of EUR 2.5-3 billion, said one banker familiar with the process, but another banker said bids will more likely be in the EUR 2-2.5 billion range, or about 10xEBITDA. 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. The source also noted sizable debts and limited potential for synergies.
The sale comes as traditional TV players look for a way to better compete with rising services such as Neflix and Amazon Prime.
Endemol is owned by Apollo Global and Rupert Murdoch’s 21st Century Fox, which have hired Deutsche Bank and Liontree to advise on the deal. They are ready to sell Endemol outright, although a potential buyer may seek a deal in which Fox retains a minority, said one banker familiar with the process.
