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Endemol to buy Southern Star

Big Brother firm Endemol has confirmed that it is to acquire Australian producer-distributor Southern Star Group, adding 14,000 hours of programming including hit soap Home & Away to its library.

The Dutch production giant is buying 100% of the company from Australia’s Fairfax Media, for what is believed to be close to A$75m (US$50m). UK-based Southern Star Factual (fka Oxford Scientific Films) and the Aussie firm’s 75% stake in UK children’s producer Darrall Macqueen will be retained by Fairfax.

The deal includes Southern Star International, Southern Star Entertainment and Southern Star’s 49% share in the 10-year-old Aussie joint venture company Endemol Southern Star. The deal is dependent on regulatory approval, but is expected to be completed in Q1, 2009.

Under the new set-up, Hugh Marks will continue as CEO of Southern Star Group, reporting to Ynon Kreiz, chairman and CEO of Endemol Group. Rory Callaghan will remain the MD of Endemol Southern Star and Southern Star Entertainment, but will now report to Marco Bassetti, chief operating officer of Endemol Group.

The Australian firm’s distribution arm Southern Star International will continue to be run by CEO Cathy Payne, but reporting to Endemol’s new chief commercial officer Tom Toumazis. The sales division is set to merge with Endemol’s own distribution arm, a move likely to result in job losses.

Kreiz (left) said the deal was appealing to Endemol on three levels: “It greatly enhances our position as a major production force in Australia, New Zealand and South Pacific; it further builds our global distribution platform, which will now combine both Southern Star International and Endemol’s worldwide operations; and it accelerates the expansion of our scripted programming activities.”

Toumazis, who moved over from Disney-ABC at the start of this year, will “play a key role in the integration of Southern Star International with our existing global distribution activities and in further expanding this core part of our business,” added Kreiz.

Southern Star’s library comprises comprising drama, children’s TV, animation, entertainment and reality formats and factual programmes. Top titles include Home & Away and City Homicide on Seven Network, McLeod’s Daughters on Nine Network and Wire in the Blood on ITV in the UK.

Catalogue titles include Blue Heelers, Water Rats, Secret Life of Us, Love My Way and Blue Water High, while new titles for 2009 include Rescue and Tangle.

“The ability to become a major part of Endemol’s expansion in international distribution and growth in scripted programming is an ideal opportunity for our business and our people and will enable us to expand our creative ambitions,” said Marks (left).

Sydney-based Fairfax, publisher of the Sydney Morning Herald newspaper, last summer sold UK-based Carnival Films, which came as part of the Southern Star acquisition, to NBC Universal for US$55.6m.

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