BB FANS

As the production company responsible for Big Brother sinks further into debt, ITV is in talks with Silvio Berlusconi's Mediaset over buying it.

Endemol, which also brought Secret Diary of a Call Girl to screens, is currently struggling with a £1.8bn debt which would be restructured by Mediaset and ITV's unconfirmed venture. In recent past, ITV has struggled with acquiring overseas commissions, so acquiring Endemol, with its 80 subsidiaries in 31 countries, would certainly be an important move. It would also aid ITV as it works towards expanding its in-house production, a strategy that would allow the company to increase the intellectual property rights it owns and sends abroad.

A source quoted in the Telegraph cites the talks as essential to chief executive Adam Crozier's "strategy of diversifying revenue away from advertising income." Joining forces with Mediaset to take ownership of Endemol, the source claims, would be "a solution."

newstatesman

Deal or no deal for ITV and Endemol?

ITV shares were up 3.3pc yesterday after The Telegraph revealed that it has been in talks with Silvio Berlusconi's Mediaset - one of Endemol's shareholders - about a potential takeover deal.

Endemol - which earned about €140 million last year on earnings before interest, depreciation, amortisation, taxation - will be looking for a deal to boost profits and attract new talent (and sort out its debts, which are well over £1.77 billion), but commentators suggest it might not be a good move for ITV.

The Guardian's Dan Sabbagh says "Amy Childs may be a hit on Big Brother, but that doesn't mean Endemol is worth ITV wasting a penny on".

MediaTel