Time Warner (TWX) Looks to Get More Real with Acquisition of Endemol for $1.34B

Shares of Time Warner Inc. (NYSE: TWX) are trading down 1.5 percent on the day as Reuters reports the company has made an offer to purchase the European based television company Endemol for $1.34 billion.

This may prove to be a strategic acquisition for TWX as Endemol is forecasted to beat earnings expectations for fiscal 2011. The company is currently owned by Goldman Sachs, but is now looking for investors after breaching its banking covenants. An extension was granted from mid-November to tomorrow, December 13th. This is Time Warner's second offer, the first coming last month, and management at Endemol noted the likelyhood of accepting this one is highly.

Endemol currently operates in 31 different countries and has produced reality-TV and game formats such as Deal or No Deal, Big Brother, and Extreme Makeover. This deal would increase Time Warner’s market share in reality TV programming and correlates with last year’s purchase of Britain based Shed Media, the creators of programs such as Supernanny. TWX purchased Shed Media for $156 million.

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