Mumbai: Sony Pictures Entertainment (SPE) is making an offer to acquire all issued shares of the Dutch entertainment company 2waytraffic. The offer from SPE is to acquire 2waytraffic for an initial cash consideration of £114.3 million. The transaction is subject to the satisfaction of certain conditions, including acceptance by shareholders holding not less than 95% of the issued shares of 2waytraffic and various regulatory approvals.
If consummated, the acquisition will enhance Sony Pictures’ global capabilities in the light entertainment market, which includes game shows, reality programming, variety shows, quiz shows and competitions.
Based in Hilversum, the Netherlands, 2waytraffic creates, produces, licenses and distributes light entertainment content across television, mobile and digital platforms. 2waytraffic has a strong portfolio of television formats, including You Are What You Eat, Take It Or Leave It, Brainiest and That’s The Question as well as one of the most successful game shows in recent history, Who Wants to Be a Millionaire?
"One important key to the growth of Sony Pictures in the years ahead is global expansion," said SPE chairman and CEO Michael Lynton. "With the potential acquisition of 2waytraffic, we would have the opportunity to expand our access to new content and increase our interactive and distribution capabilities around the world. This would complement our successful scripted production and distribution business, and speed up the growth of our light entertainment business."
2waytraffic chief executive Kees Abrahams said, "In the relatively short trading history of 2waytraffic we are proud of our growth and accomplishments. The combination of 2waytraffic and Sony Pictures Entertainment would allow us to further accelerate our growth strategy to become a leading producer and distributor of TV formats and interactive content across multiple platforms. We believe the offer provides shareholders with good value today in cash without exposure to the inherent risks of pursuing this growth strategy as an independently listed company."
The offer to acquire 2waytraffic is one of a number of strategic initiatives that SPE has recently completed and is integral to the company’s global production and distribution strategy.
2waytraffic’s Board has recommended that 2waytraffic’s shareholders accept SPE’s Offer. 2waytraffic is listed on the London Stock Exchange’s Alternative Investment Market (AIM).