13 March 2008
SONY PICTURES ENTERTAINMENT MAKES OFFER
TO ACQUIRE 2WAYTRAFFIC
London - 13 March 2008 - Sony Pictures Entertainment (SPE) announced today it is
making an offer (the Offer) to acquire all issued shares of the Dutch
entertainment company, 2waytraffic.
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? 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.
"One important key to the growth of Sony Pictures in the years ahead is global
expansion," said Michael Lynton, 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
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.
Michael Grindon, President of SPE's international television division, Sony
Pictures Television International (SPTI), said, "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, Chief Executive, 2waytraffic, 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."
As one of the leading Hollywood studios, SPE holds a light entertainment
catalogue that has been highly successful across television outlets globally. In
the United States, for example, the studio's Sony Pictures Television division
produces two of the longest-lasting and most successful game shows in television
history, Wheel of Fortune and Jeopardy!, as well as the new hit game show Power
of 10 for CBS. Outside the United States, SPTI produces and distributes SPE
formats such as Power of 10 and Dragons' Den, the highly successful reality
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). Further details of the Offer are available from
2waytraffic's regulatory announcement made today to the London Stock Exchange.
This announcement contains certain statements that are forward looking. These
statements involve risk and uncertainty because they relate to events and depend
on circumstances that will occur in the future. Forward looking statements are
not guarantees of future performance. Actual results and developments may differ
materially from those made in or suggested by these statements and a number of
factors could cause such results and developments to differ materially from
those expressed or implied by these forward-looking statements.
About Sony Pictures Entertainment
Sony Pictures Entertainment (SPE) is a subsidiary of Sony Corporation of America
(SCA), a subsidiary of Tokyo-based Sony Corporation. SPE's global operations
encompass motion picture production and distribution; television production and
distribution; digital content creation and distribution; worldwide channel
investments; home entertainment acquisition and distribution, operation of
studio facilities; development of new entertainment products, services and
technologies; and distribution of filmed entertainment in 67 countries. Sony
Pictures Entertainment can be found on the World Wide Web
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