A consortium fronted by Silvio Berlusconi, the former Italian prime minister, sealed a €3.1 billion (£2.1 billion) buyout deal for Endemol, the producer of Big Brother. The purchase will mean the return of John de Mol, the Endemol co-founder and Big Brother creator, to the production company three years after he left to pursue other ventures. Mediaset, the Italian broadcaster in which Mr Berlusconi has a 36 per cent stake; Cyrte Investments, Mr de Mol’s Dutch investment group; and Goldman Sachs, the investment bank, snapped up an immediate 75 per cent stake from Telefónica, the Spanish Telecom group, for €2.63 billion. Under the terms of the deal, they must make an offer for the remaining 25 per cent floated on the Amsterdam Stock Exchange at €25 a share as soon as possible, bringing the total to €3.1 billion. The Berlusconi and de Molled bid was understood to have been the highest on offer in a hotly contested auction that saw off a rival French attempt from Stéphane Courbit, head of Endemol France, as well as a bid by Televisa, the Mexican television company, in a second round that ended last week. The new owners said that they would split the 75 per cent stake as well as the additional 25 per cent equally three ways and inject a further €465 million into Endemol for development of new shows. For Mediaset, the deal represents an opportunity for international expansion, after it lost out in an attempt to aquire a German broadcaster to a private equity group last year. Last week, Cyrte acquired the rights to the Hammer Horror film back catalogue with the purchase of Hammer Film Productions.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax