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Big Brother firm to float

Dan Milmo
Friday November 11, 2005
The Guardian


Endemol, the Dutch production company behind the Big Brother phenomenon, is to float later this month in a share offering expected to value the business at up to €1.6bn (£1.1bn). The listing on the Amsterdam stock exchange will not include Endemol's French business, following a dispute over earn-out agreements. The rest of the company includes a UK division headed by Peter Bazalgette, who is also chief creative officer of the wider group.


Endemol is closely associated with the reality TV genre through its ownership of the Big Brother format which has aired in 36 countries and sparked the boom in reality TV. Other successful formats, which generate revenues by appearing in multiple countries, include Fear Factor and Changing Rooms. Last year turnover rose nearly 7% to €850.9m, with reality programming generating nearly 80% of sales.

Endemol was formed in 1994 by the merger of John de Mol Productions and Joop van den Ende productions. Mr de Mol made his fortune six years later when Telefónica, the Spanish telecoms operator, bought the production outfit for €5.5bn in one of the landmark takeovers of the dotcom era.

Yesterday's valuation of the production company underlined how well the markets have learnt their lesson from five years ago. The offer price is expected to be in the range of €8.80 to €12.80 a share, valuing the company at between €1.1bn and €1.6bn.

Endemol began marketing the shares yesterday and trading is expected to begin on November 22.

http://business.guardian.co.uk/story...639914,00.html