Endemol has acquired a 33% stake in Reshet. The investment is part of a wider deal that will see the production and distribution giant and the free-to-air Israeli broadcaster join forces to create and produced new on-screen and multiplatform content.
The deal increases Endemol’s exposure to the Israeli market and comes after its acquisition of production firm, and producer of the Israeli Big Brother, Kuperman (now Endemol Israel) in April.
Recent Israeli reports had linked the two companies, but the partnership was only confirmed this morning.
The pair said they will jointly create new content for Reshet’s broadcast, online and second screen platforms and Endemol will distribute that programming internationally through its Endemol Worldwide Distribution division.
Endemol will also produce the jointly developed projects for the Israeli market.
Existing Reshet shareholders Udi Angel and the XT Group are expected to have a reduced holding in Reshet but retain control in order to facilitate the Endemol deal.
Just Spee, CEO of Endemol Group, said: “Israel is one of the world’s most innovative and creative markets; delivering exciting and successful formats with international appeal. Reshet is already a leading broadcaster in the region and with an outstanding management team the company is strongly positioned to continue its impressive growth. By joining forces with them we are able to significantly build our capacity to create new original, multi-platform content with global potential, which will be shared among Endemol’s worldwide creative network.”
Avi Zvi, CEO of Reshet added: “Endemol’s vast experience in the international arena will allow Israel’s vibrant creative industry to bring premium programming to the global market, efficiently and successfully. Strengthening Reshet’s ownership structure with one of the largest television and format companies in the world will accelerate Reshet’s growth in both local and international markets.”
Reshet and Keshet share Channel 2 in Israel, but upcoming regulatory changes will see each get its own frequencies. The Endemol-Reshet deal needs regulatory approval.