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| FremantleMedia set for buying spree | FremantleMedia set for buying spree |
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| The X Factor co-producer FremantleMedia is preparing for a buying spree to boost its global production business. But don't expect a deal with Big Brother maker Endemol, according to Thomas Rabe, the chief executive of parent company Bertelsmann. | The X Factor co-producer FremantleMedia is preparing for a buying spree to boost its global production business. But don't expect a deal with Big Brother maker Endemol, according to Thomas Rabe, the chief executive of parent company Bertelsmann. |
| Rabe, a little over a year into running the German media group that owns assets including music publisher BMG and a 53% stake in books joint venture Random House/Penguin, said that following a period of management transition the time was right to start looking to return to the acquisition trail. | Rabe, a little over a year into running the German media group that owns assets including music publisher BMG and a 53% stake in books joint venture Random House/Penguin, said that following a period of management transition the time was right to start looking to return to the acquisition trail. |
| "Fremantle is one of our so-called growth platforms," he said, speaking to MediaGuardian ahead of Bertelsmann's 2012 results presentation in Berlin on Tuesday. "I am interested in building and growing it organically and through acquisitions. Under the new management, the focus has been on building the creative pipeline, improving the processes". | "Fremantle is one of our so-called growth platforms," he said, speaking to MediaGuardian ahead of Bertelsmann's 2012 results presentation in Berlin on Tuesday. "I am interested in building and growing it organically and through acquisitions. Under the new management, the focus has been on building the creative pipeline, improving the processes". |
| Rabe is about to free-up as much as €2bn (£1.7bn) from the sale of about 17% of Bertelsmann's stake in the publicly-listed, pan-European broadcaster RTL – leaving it with 75% – with the decision on the timing of the sell-down set to be made after Easter. FremantleMedia is RTL's content production, rights and distribution subsidiary. | Rabe is about to free-up as much as €2bn (£1.7bn) from the sale of about 17% of Bertelsmann's stake in the publicly-listed, pan-European broadcaster RTL – leaving it with 75% – with the decision on the timing of the sell-down set to be made after Easter. FremantleMedia is RTL's content production, rights and distribution subsidiary. |
| He said that while Bertelsmann had not actively sought out investors looking to buy most, or even all, of the 17% stake, a number of unnamed parties had expressed an interest in the shareholding. | He said that while Bertelsmann had not actively sought out investors looking to buy most, or even all, of the 17% stake, a number of unnamed parties had expressed an interest in the shareholding. |
| Rabe made it clear, however, that Bertelsmann would not sell the RTL stake in bulk to any one strategic investor, but would instead offer it to a wide range of buyers on the stockmarket. | Rabe made it clear, however, that Bertelsmann would not sell the RTL stake in bulk to any one strategic investor, but would instead offer it to a wide range of buyers on the stockmarket. |
| London-based FremantleMedia last made acquisitions in 2010. Rabe ruled out looking at Dutch producer Endemol, long mooted to be heading for the auction block when its debt and ownership restructure is finally sorted out. He indicated that Endemol is likely to have a hefty price tag, at a time when Bertelsmann is looking to make acquisitions across its portfolio of businesses. | London-based FremantleMedia last made acquisitions in 2010. Rabe ruled out looking at Dutch producer Endemol, long mooted to be heading for the auction block when its debt and ownership restructure is finally sorted out. He indicated that Endemol is likely to have a hefty price tag, at a time when Bertelsmann is looking to make acquisitions across its portfolio of businesses. |
| Fremantle, which makes programmes including The Apprentice and the Got Talent and Idol franchises, boosted revenues by 19.7% year-on-year in 2012 to €1.7bn. However earnings fell 3.5% year-on-year. | Fremantle, which makes programmes including The Apprentice and the Got Talent and Idol franchises, boosted revenues by 19.7% year-on-year in 2012 to €1.7bn. However earnings fell 3.5% year-on-year. |
| In the UK, Fremantle's key relationship with Simon Cowell's production company Syco will come under scrutiny this year, with the alliance's three-year deal to make The X Factor and Britain's Got Talent for ITV up for renewal. | In the UK, Fremantle's key relationship with Simon Cowell's production company Syco will come under scrutiny this year, with the alliance's three-year deal to make The X Factor and Britain's Got Talent for ITV up for renewal. |
| FremantleMedia's chances of getting money for acquisitions from the RTL stake sale were boosted recently when Rabe ruled out bidding for Springer Science. | FremantleMedia's chances of getting money for acquisitions from the RTL stake sale were boosted recently when Rabe ruled out bidding for Springer Science. |
| Bertelsmann owned a stake in the business more than a decade ago, but Rabe said it carried too high a price tag. It has been reported to be up for sale for €4bn. | Bertelsmann owned a stake in the business more than a decade ago, but Rabe said it carried too high a price tag. It has been reported to be up for sale for €4bn. |
| Tony Cohen, the global chief executive of FremantleMedia, stepped down after 17 years with the company in April 2012. | Tony Cohen, the global chief executive of FremantleMedia, stepped down after 17 years with the company in April 2012. |
| He was replaced by Fremantle veteran Cecile Frot-Coutaz, who has been running the company's North American operation since 2005, on 1 July. "It has only been eight or nine months," Frot-Coutaz said. "In time there will be acquisitions." | He was replaced by Fremantle veteran Cecile Frot-Coutaz, who has been running the company's North American operation since 2005, on 1 July. "It has only been eight or nine months," Frot-Coutaz said. "In time there will be acquisitions." |
| BMG, the music publisher that Bertelsmann took full control from partner KKR earlier this month, is also likely to be a focus of extra investment. | BMG, the music publisher that Bertelsmann took full control from partner KKR earlier this month, is also likely to be a focus of extra investment. |
| Rabe said that he aimed to build the BMG business, which only managed to snap up minor pieces of EMI's assets Universal was forced sell by competition regulators, from €300m to €500m in annual revenues. | Rabe said that he aimed to build the BMG business, which only managed to snap up minor pieces of EMI's assets Universal was forced sell by competition regulators, from €300m to €500m in annual revenues. |
| He added that he was "not disappointed" with only capturing some EMI assets, such as music businesses Mute and Sanctuary, home to the Sex Pistol's album Spunk. | He added that he was "not disappointed" with only capturing some EMI assets, such as music businesses Mute and Sanctuary, home to the Sex Pistol's album Spunk. |
| "Our focus is on music publishing, not recording," he said. "It is not a big disappointment. We are the largest independent. There is a significant gap to number three, but that is not a concern at all. We are relevant on a worldwide basis, we have a global presence, we have sufficient scale." | "Our focus is on music publishing, not recording," he said. "It is not a big disappointment. We are the largest independent. There is a significant gap to number three, but that is not a concern at all. We are relevant on a worldwide basis, we have a global presence, we have sufficient scale." |
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