It was announced earlier today, March 15, that 21st Century Fox and Apollo Global Management are in the beginning stages of a deal that would make one powerful television production company by taking over three smaller ones.
The negotiations would bring together Apollo’s Endemol and Core Media Group with Fox’s Sunshine Group, according to ft. For those who are not familiar with the media companies, that simply means that “American Idol,” “Deal or No Deal” and “The Biggest Loser” would all be produced by the same company.
This is an extremely important potential merger because of what each side has the ability to bring to the deal.
21st Century Fox is known among its 1.5 billion subscribers for its cable, broadcast, pay TV and film productions on Fox, FX, FXX, Fox (including Business Network, Sports, Sports Network), and National Geographic channels.
In addition, Fox’s Shine Group was started by Elisabeth Murdoch in 2001. It now consists of 30 production companies.
Apollo Global bought Core Media in 2011 for $509 million. At the time it was believed that this was to expand “American Idol.” Endemol is responsible for popular shows “Big Brother” and “Deal or No Deal.”
The combination of these two companies would “likely reduce costs for all involved,” reports Variety. It would also increase their competitiveness as other television production companies are doing their best to merge and consolidate as well.
Representatives from 21st Century Fox were unavailable for comment at the time of this blog post. This story will be updated to reflect their statements upon speaking with them.