Endemol Takes Stake in Telenovela Outfit

HILVERSUM/BUENOS AIRES, December 15: Endemol is picking up a
minority share in Underground, the well-known Argentine production outfit
behind Lalola and The Successful Mr. and Mrs. Pell$.

Endemol, which has
an option to up its interest to a majority stake, is also setting up a 50/50
joint-venture agreement with
Underground. That alliance establishes Endemol as the exclusive distributor and
co-producer of all future Underground properties.

Endemol Argentina
and Underground are currently co-producing The
Successful Mr. and Mrs. Pell$, which launched last month on Telefe. The
series started with a 38-percent market share and peaked at 60 percent.
Originally commissioned for 120 hour-long episodes, the show has been extended
for a further 30 episodes. Endemol and Telefe International are distributing
both the finished series and the scripted format.

Martin Kweller, the
managing director of Endemol Argentina and creative director for Latin America,
said: "One of the key growth opportunities for Endemol is to significantly
increase our activities in the telenovela business, which is no longer just a
Latin American phenomenon, but a rapidly expanding part of the international TV
market. Bringing together Endemol's global distribution and production
resources with Underground's creative capacity to deliver breakout hits in this
genre will be an extremely powerful combination."

Sebastian Ortega,
who heads up Underground, added: "Underground was set up in 2006 with two
goals: the challenge of producing fiction series locally and reaching new
markets. This JV will help us achieve our second goal, to increase penetration
and position of the product in markets in which Endemol is already established.
We are really happy with the success of Pells;
we have received excellent reviews, ratings are great and there is interest of
key territories such as U.S., Spain Russia, France, Germany and Mexico."

—By Mansha
Daswani