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.