Rupert Murdoch linked with Endemol purchase

by Staff, Brand Republic 23-Jan-07, 11:00

AMSTERDAM - Reports that Rupert Murdoch is interested in taking control of global TV production company Endemol have caused its shares to surge as much as 12% this morning.

Spanish newspaper La Gaceta today linked Murdoch with Endemol, which is 75% owned by Spanish telecoms company Telefonica.

Telefonica is expected to sell its stake in the first quarter of the year, having decided to dispose of the 'Big Brother' producer it bought in 2000 for €5.5bn. Endemol's 2005 revenues were €900m and its current market capitalisation is €2.6bn (£1.7bn).

Since speculation that Telefonica would make the move started running last summer, several names have been touted as potential bidders.

Disney recently denied reports that it was interested in the company and had formed an alliance with Endemol's co-founder John de Mol, who sold the company to Telefonica, but still owns more than 5% of its shares.

Time Warner has also been linked with the company, and there is also a possibility of a management buyout. Peter Bazalgette, Endemol's chief creative officer, and Stefan Courbit, the managing director of Endemol France, are also believed to be interested in acquiring the production company.

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