[Arneldo]

From media guardian:

Channel 4 is understood to have signed a deal to keep Big Brother for another two years.

The new deal with Big Brother producer Endemol is for a new two-year contract, which will run after the current agreement ends following next summer's eighth series.

Although the ITV director of television, Simon Shaps, is believed to have talked to Endemol about the contract, it is understood the network did not make a formal offer for Big Brother.

Endemol and Channel 4 have finalised details of the new deal, which includes further series of Celebrity Big Brother.

The deal is said to have been thrashed out by Channel 4 director of programmes, Kevin Lygo, and Endemol UK chief creative officer, Tim Hincks.

"Both sides are very happy with the deal," a source close to the talks said.

Sources familiar with the talks suggest the deal does not cover providing Big Brother content to Channel 4's proposed new social networking website, unveiled recently by chief executive Andy Duncan.

It is understood that Channel 4 and Endemol will hold separate negotiations about the website. Mr Duncan has suggested that potential Big Brother contestants for the next series will be able to apply via the website and post their audition videos online.

ITV's decision not to bid for the show meant that the price tag has fallen and it is thought that Channel 4 will be paying between £30m and £40m a year for the two future series.

There had been suggestions the price could rocket to as much as £70m if ITV entered a bidding war for Big Brother. Industry estimates suggest the broadcaster makes around £50m per year from the reality show.