Global production companies Shine and Endemol could unite under a proposal floated by 21st Century Fox and Apollo Global Management.
If the deal proceeds it could have repercussions for the two companies’ operations in Australia and their international sales arms, although Fox has said each company would continue to operate independently.
Fox plans to form a joint venture with private equity firm Apollo Global Management which would combine the Fox-owned Shine Group and Apollo-controlled Endemol and Core Media Group, which produces American Idol, So You Think You Can Dance, Love in the City for the OWN network and Euros of Hollywood for Bravo. Funds controlled by Apollo and Oaktree Capital Management have a 36% stake in Nine Entertainment Co.
Fox said there is a preliminary agreement for Fox and Apollo to jointly own and manage the co-venture but there is no assurance the proposed transaction will be completed.
It indicated there are no plans for immediate restructuring or executive changes. The process is expected to continue for several months.
People familiar with the negotiations point out there are several regulatory hurdles to cross and it’s too early to say whether the deal will eventuate.