Spanish telecoms group Telefonica has hired financial advisers to help sell its 75 per cent stake in the creator of reality TV show "Big Brother", Endemol.
Private equity firms and Endemol co-founder John De Mol are considered to be potential bidders after months of speculation about who might want to snap up the stake.
Telefonica formally launched the sale of its stake by hiring Lehman Brothers as adviser.
Analysts have cited Endemol's run of hit formats, global network, strong cash generation and low borrowings as attractive for potential bidders. Endemol has enjoyed global success with its reality TV hit concept "Big Brother" as well as with game and quizz shows like "Deal or No Deal" and "Who Wants to be a Millionaire?"
Telefonica, which bought Endemol for €5.5 billion in 2000, listed a stake in the company in 2005, and the shares have more than doubled from the nine euros issue price. Endemol's current market capitalisation is around €2.7 billion. The Spanish company wants to get out of the content producing business to concentrate on distribution. It is in the pay-TV business in Spain and Latin America and distributes multimedia content to its mobile phone clients.
"If Telefonica were to decide to divest its 75 per cent stake in Endemol N.V., it is its intention to solicit from the potential purchaser a public offer for the other 25 per cent of the shares outstanding in Endemol N.V.," Endemol said.
Spain's leading television channel, Telecinco, said on Thursday it will meet Italian parent company Mediaset next week to study a possible joint bid for Endemol.
Mediaset has said previously it was interested in teaming up with Endemol's co-founder, John de Mol, for a possible bid.
The Financial Times reported last week that Bernard Arnault, chairman and chief executive of LVMH, was preparing a bid for Endemol with Endemol's French management.