Sony Makes Offer for 2waytraffic

LONDON, March 13: Sony
Pictures Entertainment (SPE) has made a £114.3 million cash offer to acquire
the Dutch interactive entertainment and format company 2waytraffic.

The Hilversum-based
company’s portfolio of formats includes You Are What You Eat, Take It Or Leave It, Brainiest and Who Wants to Be a Millionaire?, following its acquisition of the Celador
International library in 2006.

The deal, if approved,
increases SPE’s presence in the light-entertainment genre, with a catalogue
that already includes properties like Power of 10 and Dragons’ Den.

“One important key to the
growth of Sony Pictures in the years ahead is global expansion,” said Michael
Lynton, the chairman and CEO of SPE. “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.”

Michael Grindon, the president of Sony Pictures Television International (SPTI),
added: “2waytraffic and SPE,
working together, would bring an exciting array of new and classic formats to
our television clients around the world. Our combined expertise in production,
distribution and interactive applications gives us distinct and enhanced
opportunities in television markets around the world.”

Kees Abrahams, the chief
executive of 2waytraffic, said the deal “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 transaction is subject
to the satisfaction of certain conditions, including acceptance by shareholders
holding not less than 95 percent of the issued shares of 2waytraffic, and
various regulatory approvals. 2waytraffic’s board has recommended that
shareholders accept the offer.

—By Mansha Daswani