According to media reports private equity owner Apax Partners are selling the entertainment rights company HIT Entertainment for app. 1.1 billion Euros or best offer. HIT Entertainment owns the rights to numerous hit properties including Thomas the Tank Engine, Bob the Builder, Angelina Ballerina, and Pingu. What is more, HIT has built up a library of more than 1500 hours of successful children’s programming. Their shows air in over 240 countries and 45 different languages worldwide.

During the last decade, HIT Entertainment was under considerable financial stress. Equity owner Apax Partners was forced to increase fees to their lenders to enlarge financial scope. At the same time, Apax had to write down their investment. Rumour has it that they suffered a loss of app. 550m Euros.

According to industry experts HIT Entertainment earned about 56m Euros before interest, tax, depreciation and amortisation for the year to 31 July 2010.

Insiders suggest that the list of potential bidders include Disney, Mattel, and Hasbro, major TV companies like Viacom and Chorion as well as Haim Saban, who has just repurchased the rights to the Power Rangers brand from Disney. Interested parties are expected to form strategic alliances to place joint bids.