Chrysalis, Vnu In Tv Venture

The joint venture is expected also to set up independent production companies in Germany and Scandinavia. The deal was driven by the fact that Chrysalis, which owned 49.9 per cent of the Dutch independent producer IDTV, did not have the capital to expand as fast as it would have liked.

Under the deal, Chrysalis will contribute its shareholding in IDTV to the new joint venture, which will be known as CVI Media. VNU will pay Fl 51.3 million ($30.26 million) for 49.9 per cent of the venture, with up to $6.5 million in deferred payments related to profits. VNU will also make credit of about $24.3 million available to develop the company.

 

The deal is VNUs first big move into television production, although it already owns 49 per cent of Holland Media Group, which controls broadcasters such as Veronica in Holland and VTM in Belgium.

IDTV founder and chief executive Harry de Winter will be chief executive of CVI. In the year to the end of December, IDTV, which is the second-largest independent Dutch producer, behind Endemol, had a net profit of Fl 6.4m. Mr Chris Wright, chairman of Chrysalis, said the deal enabled three companies -- Chrysalis, IDTV and VNU - to combine their skills, experience and resources to create a major new force in the European television production market.

Interest in the sector was underlined as shares in Endemol Entertainment, the Netherlands leading independent producer of TV programmes, soared during their first days trading on the Amsterdam Stock Exchange on Thursday, writes Gordon Cramb.

In a flotation which was 25 times oversubscribed, the price was set at Fl 48 a share, top of the indicated range, valuing the company at Fl 1.6 billion. But Endemol made its debut at Fl 55.80 and ended the day at Fl 56.50.

The company, created by Joop van den Ende and John de Mol, expects to double revenues and profits within five years.