AMC Networks to Acquire Chellomedia From Liberty Global for $1 Billion

AMC Networks (NASDAQ: AMCX  ) announced today that is has agreed to acquire almost all of Chellomedia from Liberty Global (NASDAQ: LBTYA  ) for $1.04 billion, or €750 million. Chellomedia is the international content division of Liberty Global, and that division generated approximately $450 million in revenue for the 12 months ending June 30.

AMC Networks noted the acquisition will give it access to 138 countries and more than 390 million households, which will provide "significant long-range opportunities for AMC Networks to distribute its popular original programming." In addition to the broad range of channels across a variety of different genres, the acquisition will also include joint ventures Liberty Global had through Chellomedia with CBS International, A+E Networks, and other partnerships.

"Chellomedia has developed a remarkable portfolio of popular channels that reach hundreds of millions around the world," said Josh Sapan, President and CEO of AMC Networks. "This acquisition allows us to secure a large, global platform on which to distribute our increasingly successful original programming through a collection of strong, well-established and well managed assets worldwide."

Mike Fries, President and CEO of Liberty Global, was quoted as saying: "This is a great transaction for all parties. Chellomedia is one of the largest international channel groups ... and I have no doubt that the management team will continue to build tremendous value as part of AMC." Liberty Global said the transaction will simplify its business and allow it to "focus on our core markets and more strategic programming opportunities."

The deal will include Chellomedia's operating businesses: Chello Central Europe, Chello Latin America, Chello Multicanal, Chello Zone, and the ad sales unit Atmedia as well as its broadcast solutions unit Chello DMC. It is anticipated the transaction will be finalized in the first quarter of 2014.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2702237, ~/Articles/ArticleHandler.aspx, 10/1/2014 4:23:12 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement