Endemol Entertainment Holding NV, the creator of "Big Brother" and other television programs, said Tuesday it has agreed to purchase Endemol France for around euro450 million (US$586 million) in cash and debt.
Endemol Entertainment Holding NV, the creator of "Big Brother" and other television programs, said Tuesday it has agreed to purchase Endemol France for around euro450 million (US$586 million) in cash and debt.
The French arm was separated from the rest of Endemol in 2005 due to a dispute over management pay.
Both Endemol and its French subsidiary are controlled by Spain's Telefonica SA, but Endemol has been publicly listed in Amsterdam since Telefonica floated a 25 percent stake in November 2005, with an eye to selling the company.
Not all conditions of Tuesday's deal were made public, and Endemol Entertainment said euro194 million (US$253 million) of the price tag is dependent on the French arm's future performance. Endemol added it would fund the deal partly by borrowing money.
On Monday the Dutch stock market regulator reported under disclosure rules that Dutch tycoon John de Mol, one of the original co-founders of Endemol, has accumulated a stake of 5.15 percent in Endemol Entertainment.
Telefonica bought Endemol for euro5 billion in 2000. Its current market capitalization is around euro2.3 billion (US$3 billion).
Shares traded 2.3 percent higher at euro18.67 (US$24.30) in Amsterdam Tuesday.
In Tuesday's announcement, Endemol said the French operations had sales of around euro175 million (US$228 million) in 2006.
Endemol had net profit of euro45.8 million (US$59.6 million) on sales of euro517 million (US$673 million) in the first half of 2006, its most recent reporting period.
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