Endemol Bid Provides Hope Of Setanta Rescue

Pay-TV sports network Setanta could be saved from administration after it was revealed that media production giant Endemol, the firm behind the Big Brother reality series, is in negotiations to take a substantial stake in the broadcaster.

According to reports, Endemol is believed to be interested in taking a stake of up to 49% in the company, along with other investors, although the cost of the deal is not clear.

Analysts predict that Setanta needs a reported £100m investment to continue broadcasting with a number of potential suitors such as Sky and ESPN already ruling themselves out.

Over the weekend, Access Industries, controlled by Russian American Len Blavatnik, tabled a £20m bid for a 51% share in Setanta. He and other investors are now carrying out intense due diligence on the broadcaster’s finances which should be completed by 19th June.

Setanta, which has rights to broadcast English Premier League football as well as the Scottish Premier League and Guinness Premiership rugby, suspended taking new subscriptions last week after a major downturn in the economy led to a shortfall in customers.

Setanta has not met subscriber targets, and has lost some broadcast rights for English Premier League games, to whom it must make a £30m payment this week. Some reports suggest that the two parties have already agreed a rescheduled payment plan moving forward in light of the new investor interest.

The instalment is the latest tranche of cash due in its £392m, three-year contract with the league.

It only gained one of the six English Premier League TV packages from 2010, and has missed payment deadlines to both the FA and the Scottish Premier League.

Setanta has 1.3m UK subscribers, which is short of a target of 1.9m at which it is said to break even but ahead of the number achieved by Sky in its first two years in business.