21st Century Fox, Apollo Global To Form Content And Distribution JV

(RTTNews) - Rupert Murdoch's Twenty-First Century Fox, Inc. (FOX, FOXA) and Leon Black's private-equity firm Apollo Global Management, LLC (APO) agreed Friday to create a content and distribution joint venture company by combining Endemol NV, Shine Group Ltd. and Core Media Group.

The financial terms of the transaction, which is scheduled to close by end of the calendar year, were not disclosed. The transaction is subject to regulatory clearances and other customary closing conditions.

"This partnership advances our strategy of accelerating 21st Century Fox's growth in worldwide television production. The combination of these assets will create a leading global format business with a deep and diverse portfolio of products, enhanced distribution capabilities, and world-class creative talent," Fox Chief Operating Officer Chase Carey said in the statement.

The three-way joint venture will create one of the largest independent TV production company in the world which will be a leading global multi-platform content provider.

The combined entity will have creative operations in more than 30 markets and will make scripted and non-scripted content in over 600 formats, along with digital, gaming, and distribution operations.

The combined entity, equally held and managed by both the companies, will be headed by CEO Sophie Turner Laing, who previously had been managing director of content at British Sky Broadcasting Group Plc, known as BskyB, (BSYBY.PK, BSY.L) for the past decade.

Meanwhile, current Shine Group CEO Alex Mahon and Endemol CEO Just Spee will quit their positions in 2015 after the close of the transaction and a little more in order to enable a smooth transition. Core Media CEO Marc Graboff quit his post last month.

Rupert Murdoch's daughter Elisabeth Murdoch, who is the founder and non-executive chairman of Shine Group, will also step down once the transaction is completed.

Endemol, Shine Group and Core Media will remain separate companies till the close of transaction and CORE will hold its current capital structure post transaction.

In Friday's regular trading session, FOXA is currently trading at $32.86, down $0.25 or 0.76% on a volume of 3.44 million shares, and APO is trading at $22.53, down $0.29 or 1.27% on a volume of 0.16 million shares.