Kreiz exits Endemol

Endemol chairman and CEO Ynon Kreiz has stepped down after three years in the job, as the Big Brother producer continues to grapple with its uncertain financial future.

Kreiz (left), who co-founded Fox Kids Europe together with Haim Saban, joined the reality TV specialist from Benchmark Capital in 2008 but is now leaving as part of a mutual agreement with the Endemol board.

Endemol group president Marco Bassetti and chief financial officer Just Spee have taken over on an interim basis and Charles Allen – the former boss of UK broadcaster ITV who has been a non-exec director since 2009 – will also have a more hands-on role in key decisions moving forwards.

Kreiz’s departure comes after Endemol representatives earlier this month dismissed claims in the Dutch press that the firm was on the brink of insolvency.

The privately traded company’s net debt is understood to stand at around €3bn (US$4.3bn), a legacy of its takeover in 2007 by Mediaset, Goldman Sachs and Cyrte (a fund owned by Endemol founder John De Mol).

The firm’s creditors, including Barclays and RBS, are in talks about how its owners can ease their repayment burdens. A €900m write-down is thought to be among the remedies under consideration.

Kreiz conducted a major restructure of the firm during his tenure and oversaw acquisitions including Australia’s Southern Star, Tiger Aspect and Darlow Smithson in the UK, plus Authentic in the US.

He helped steer Endemol into new areas such as drama and sport, but despite success with gameshows such as Money Drop, Deal Or No Deal and Wipeout, insiders have raised concerns about the strength of the company’s creative pipeline.

Though Big Brother is returning to the UK on Channel 5 this autumn, it’s on much less lucrative terms that the deal the company previously had with Channel 4. A output deal with TF1 in France is also now understood to be less favourable.

But the Endemol board pointed out in its announcement over the weekend of Kreiz’s exit that he has delivered €40m in annual costs savings via territorial and head office restructuring. The company’s profits are understood to have continued to fall, however, against the backdrop of the global economic downturn.

“Ynon has managed Endemol through an extremely challenging economic environment,” said Allen. “Since Ynon joined, the group has strengthened its creative output, diversified its lines of business, completed highly accretive M&A transactions, expanded geographically, reduced its cost structure and entered into new strategic relationships. The group is in a strong position to achieve future growth and we thank Ynon for his leadership over the past three years.”

Kreiz added in a statement: “I have worked with an incredibly strong team and our achievements over the past three years leave Endemol well placed to embrace the creative challenges of the future. I thank the shareholders for their trust in me and am confident that the company is strongly positioned for continued success.”