ITV

Tag: Apollo Global Management

  • Paramount Global get $11 billion buyout offer from Apollo Global

    Paramount Global get $11 billion buyout offer from Apollo Global

    MUMBAI: Even as the dust is settling on the $517 million Viacom18 television stake sale deal between Reliance and US media behemoth Paramount Global, comes the news that the latter itself is the target of a a buyout offer. The Wall Street Journal has reported that private equity firm Apollo Global Management, has made a $11 billion offer to the buy the film and television studio. 

    This is not the first acquisition offer that a reluctant controlling shareholder Shari Redstone has received. Earlier, the David Ellison-controlled production company Skydance Media had  proposed to buy Paramount parent National Amusements and fuse it with his firm as a whole. Skydance had bid in excess of $4 billion for a 70 per cent stake. Ellison’s offer – which plans to keep all the studio  assets but sell off the rest – is still on the table.

    Paramount Global’s assets include Paramount Pictures, broadcaster CBS, Viacom cable networks including MTV as well as PlutoTV. The media conglomerate has a current valuation in excess of $7.7 billion. 

    Earlier this month, Paramount’s chief financial officer Naveen Chopra had dismissed any move towards selling the company at a Morgan Stanley media conference. “From management’s perspective, we are focused on execution. And we believe the continued execution of our plan will unlock value. We’re very conscious of the fact that our job as management is to create value for all of our shareholders…To the extent that there are other alternatives, we’ll be diligent about exploring them,” he had said. 

    The company has been grappling with the changing dynamics of content consumption under CEO Bob Bakish. In its latest quarter overall revenue shaved six per cent year-on-year to $7.64 billion, worse than an expected $7.9 billion. TV media revenue and filmed entertainment revenues respectively fell 12 per cent to $5.17 billion and 31 per cent to $647 million. The saving grace was direct to consumer revenues which rose 34 per cent to $1.87 billion.

    “Our disciplined execution and strong content offering drove our results in 2023, as we continue to evolve our business for profitable growth in 2024 and beyond. In Q4, Paramount+ revenue increased 69 per cent,  direct to consumer adjusted Operating income before depreciation and amortization (OIBDA) improved for the third consecutive quarter, and we now expect to reach domestic Paramount+ profitability in 2025 – a significant milestone,” Bakish had told shareholders at the time of the earnings release. “Looking ahead, we continue to be focused on maximizing the return on our content investments and scaling streaming, while transforming the cost base of our business. And I couldn’t be more thrilled with the early momentum we’ve had across every platform in 2024, demonstrating the power of our strategy and assets.”

  • Endemol Shine hires banks for a possible sale

    Endemol Shine hires banks for a possible sale

    MUMBAI: Netherlands-based TV production company, Endemol Shine Group, has hired Deutsche Bank and Liontree to explore a potential sale that could be valued between $2- $4 billion including debt.  

    Endemol Shine Group is known for its popular programs like Black Mirror, Big brother and MasterChef. 

    Endemol is co-owned by 21st Century Fox and Apollo Global Management in a 50:50 partnership. Both parties agreed to sell their stake if a suitable buyer is found.

    In a  multi-billion dollar media deal ($52 billion) last year, Fox sold 50 per cent stake in Endemol to Disney. That deal is now being challenged by Comcast. 

    Although Fox is supportive of the business, it does not want to acquire Endemol given its deal with Disney. 

    The cash from this sale is likely to go to Comcast or Disney, depending on who ends up with Fox’s assets, according to a report by CNBC. 

    It was earlier reported that United Kingdom based media company, ITV, wanted to consider buying the Endemol Group, should a formal process for sale begin. Whether the company will buy it or give it a pass will be something worth looking into.

  • AION Capital to acquire majority interest in PlanetCast Media Services

    NEW DELHI: AION Capital Partners Limited (the “AION Fund”) is to acquire a majority interest in PlanetCast Media Services Limited (earlier known as Essel Shyam Communications Limited) from shareholders including affiliates of the Essel Group, the Shyam Group and private equity firm Kubera Partners.

    However, the full terms of the transaction were not disclosed. This represents the second transaction affiliates of Apollo Global Management, LLC have done with the Essel Group, having invested $100 million into DishTV in 2009, having successfully exited that investment in 2015.

    The AION Fund is an India-focused fund established by an affiliate of Apollo together with ICICI Venture Funds Management Company Limited. With approximately US$825 million in committed capital, AION Fund is currently one of the largest private equity funds in India.

    Founded in 1996, PlanetCast is a professionally managed, market-leading provider of technology-led managed services to the broadcasting industry in India and neighbouring countries, with a rapidly growing footprint across Southeast Asia.

    PlanetCast provides comprehensive, customized solutions across content management operations (including storage, enrichment and automated play-out) and distribution (including satellite broadcasting, digital streaming and cloud distribution). Following the acquisition by the AION Fund, PlanetCast will continue to be led by the current management team.

    “We are excited for the AION Fund to acquire PlanetCast” said AION Fund partner Utsav Baijal. “We believe PlanetCast is a market leading franchise that delivers best-in-class digital media solutions to its customers. We look forward to working with PlanetCast’s talented and dedicated team to continue the business’s strong heritage of innovation and customer satisfaction”

    “We are pleased to have sponsored PlanetCast during this period of significant growth and transformation. PlanetCast’s foundation as a leader in the broadcasting services industry, position the company well for its new ownership under the AION Fund,” PlanetCast promoter Jawahar Goel said.

    PlanetCast Executive Director M N Vyas said, “We are grateful to our existing shareholders for all the support and guidance to date and look forward to our relationship with the AION Fund”.

    Executive Director Lalit Jain added that “We believe that under the new leadership, PlanetCast can build on its industry leadership position and invest in emerging technologies to become the leading service provider to both the traditional and digital media economy”.

  • Apollo’s 3% stake sale in Dish TV earns it a profit of Rs 135 crore

    Apollo’s 3% stake sale in Dish TV earns it a profit of Rs 135 crore

    MUMBAI: US based alternative assets manager Apollo Global Management part sold its three per cent stake in direct to home (DTH) operator Dish TV for Rs 262.5 crore, through an open market transaction on 10 April. 

     

    The stake comprising 32 million shares of an average price close to Rs 82, as compared to their original purchasing price of approximately Rs 39, was picked up by an investment unit of Citigroup and a mutual fund under Birla Sun Life.

     

    With the sale purchase, Apollo will see a profit of Rs 135 crore. The Private Equity (PE) firm is now left with eight per cent stake in the company through its outstanding global outstanding depository receipts (GDR). This stake is valued at Rs 721 crore.

     

    It was in 2009 when the PE firm invested $100 million to gain an 11 per cent stake in the company, which was the firm’s first investment in the country. Dish TV is part of the Subhash Chandra owned Zee Network with approximately 12.5 million net subscribers. With a strong range of 470 television and audio channels, it has 43 High Definition (HD) channels under its kitty. For the quarter ending 31 December, 2014 the company’s net loss stood at Rs 2.9 crore.

    Meanwhile the ESSEL group through its continuation of an earlier intimation dated 26  August last year,  informed the BSE that the Board of Directors of the Company at their meeting held on August had considered and approved to transfer the Company’s non-core business (including set top boxes, dish antenna, and related services) to its Wholly Owned Subsidiary – ‘Xingmedia Distribution Private Limited’ (presently known as ‘Dish Infra Services Private Limited), subject to necessary approvals and as per the applicable provision of the Companies Act, 2013. 

     

  • Creating the world’s largest content production behemoth

    Creating the world’s largest content production behemoth

    MUMBAI: When it’s the Murdochs you have to think big. Big with a capital B.  No less. Consider the 21st Century Fox’s latest announcement that it has entered into a preliminary agreement, with funds managed by affiliates of private equity (PE) firm Apollo Global Management to form a joint venture that seeks to bring the Shine Group, Core Media Group, and Endemol under one umbrella.

     

    The new initiative has conditions attached.  It will have to be jointly owned and managed by the two groups. 21st Century gave no assurances that the proposed transaction would be completed. 

     

    But if it does go through, it will create the world’s largest independent production engine (estimates are that its valuation will be in the region of $2 billion). The proposed Apollo 21st Century joint venture will boast a roster of shows such as Big Brother, Deal or No Deal, The Money Drop and Your Face Sounds Familiar, Total Wipeout, The Million Pound Drop Live, Peaky Blinders and Ripper Street (under Endemol); MasterChef, The Face, The Biggest Loser, The Bridge and Broadchurch (through Shine) and So You think You can Dance and American Idol (through Core Media).

     

    Both 21st Century and Apollo have their own compulsions to make the deal happen, though how it will happen is not clear. Shine, Endemol and Core Media own a complex web of production companies worldwide headed by various senior executives.

     

    Apollo, for its part, has been eager to consolidate its TV production holdings through Endemol and Core Media and even find a partner to further its global ambitions. It has $125 billion in assets in several sectors in its portfolio.

     

    Apollo wanted a piece of the content production pie and forayed into TV production when it acquired CKX Media (along with it came Simon Fuller’s 19 Entertainment which co-owns the Idol format franchise) in 2011, renaming it later as Core Media.  

     

    The PE firm then went on to expand its TV production presence by acquiring a stake in Endemol after buying out owners Goldman Sachs and Sylvio Berlusconi’s Mediaset in 2012.  Endemol has a presence in 30 countries through 90 companies, makes more than 15,000 hours of programming every year for 300 broadcasters and has a handsome catalogue of 2000 formats.

     

    Apollo currently co-owns Endemol with Cyrte Investments (a fund closely associated with Endemol founder John de Mol and now renamed as Daysim Investment Strategies).  It tried to merge Core and Endemol but backed off when de Mol opposed the move in 2012. De Mol, for his part, attempted to unite Endemol with his current media vehicle Talpa Media earlier this year, but jettisoned the deal when the sticker price went up.

     

    Earlier, in 2012, Apollo explored the possibility of fusing Endemol and Core Media with investment from former News Corp CEO Peter Chernin’s Chernin Entertainment. But the discussions were aborted.

     

    Murdoch has his own imperatives to make the deal happen. It gives 21st Century the opportunity to exit from the Shine group, which was acquired by News Corp in 2011 for $675 million. He had come under severe criticism of nepotism as Shine was founded and run by his daughter Elisabeth, who now functions as its chairman. Today, Shine is owned by 21st Century after Murdoch restructured News Corp into two units – News Corp and 21st Century – following the phone hacking and police bribery scandals in the UK.  And it has 26 production companies across 11 countries including Shine TV, Shine America, Judos Film & TV and Princess Production in its portfolio.

     

    The deal is an indication of how Murdoch sees his media empire structured going forward. His movie production and television broadcasting businesses figure under a single vehicle 21st Century.  His newspaper and publishing interests under News Corp. His satellite, platforms and pay TV business under British Sky Broadcasting (BSkyB – has recently announced that it has made an offer to acquire 21st Century’s investment in Sky Deutschland and Sky Italia, leading pay TV platforms in Europe).

     

    BSkyB, Sky Italia and Sky Deutschland are owned by 21st Century with differing equity stakes. And his content production business is now slated to be under the joint Apollo and Shine venture.

     

    The proposal is timely. The content production landscape is undergoing a wave of consolidation: recently, Discovery Communications and Liberty Global agreed to buy UK production company All3Media for $930 million and Britain’s ITV snapped up 80 per cent of Leftfield Productions for $360 million.

     

    Agglomeration in content production in Europe and the US is following in the wake of consolidation in the pay TV business, where companies such as Comcast are showing an urge to merge in order to strengthen their negotiation power with content providers.

     

    The Apollo-21st Century joint venture, if it goes through according to reports, will also focus on expanding the combined entity’s focus beyond unscripted formats to scripted shows and on digital productions for online and over the top service providers. And, if it does get realised, it could spark off another wave of acquistions by other content producers as they try and join the getting-scale race too.