The creation of a mega-indie that combines the firepower of Endemol, Shine Group and American Idol co-owner Core Media is the most significant step in the latest round of super consolidation.
The joint venture would control the global unscripted influence of Endemol, the growing scripted sway of Shine and a number of budding TV assets from Core Media.
It would be the most powerful international TV business outside of the Hollywood studios.
The preliminary talks are expected to lead to the creation of a new company that houses all three businesses, rather than a traditional merger creating a single entity. The result is that there is less likelihood of drastic cuts across the firms.
The timing of the deal is significant as it comes after Discovery acquired All3Media last week and is expected to be part of a wider round of super consolidation that could include firms such as Fremantle Media, Zodiak Media and Tinopolis.
The mood within Endemol is thought to be upbeat, given that it would represent a resolution to a period of corporate uncertainty.
Apollo Global Management has been acquiring growing chunks of Endemol’s $2.8billion debt over the last few months as it looks to take control of the company through a debt for equity trade.
The Wipeout producer’s performance has remained strong in recent years, with a growing move into drama production, but it has struggled with the debt that it inherited in 2007. If talks are successful, Endemol would enter a new phase that it believes promises genuine investment.
Shine Group is equally positive about the move. Senior executives believe it would bolster the company’s standing in the US, where it has started to make headway with series such as Fox’s Gracepoint, as well as provide benefits for its 26 indies in 11 countries.
Shine chief executive Alex Mahon broke news of the deal to its employees earlier this afternoon and she is expected to play a major part in the creation of the new firm along with chief operating officer Tim Robinson, and US boss Rich Ross.
Endemol’s top executives including president Tim Hincks and CEO Just Spee will jointly be significant players from the Dutch firm’s side.
The JV would see massive international TV brands come together under one umbrella including Shine’s Masterchef and Endemol’s Big Brother on the unscripted side and drama series such as Shine’s The Bridge and Endemol’s Ripper Street.
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