Liberty Global Sells Chellomedia to AMC Networks for US$1 Billion
Denver, Colorado, Oct. 28, 2013 — In an effort to balance its books after its spending spree on European cable assets, Liberty Global plc announced today the sale of all its international content division Chellomedia to AMC Networks Inc. for US$1.035 billion.
The assets being sold include Chello Multicanal, Chello Central Europe, Chello Zone, Chello Latin America and Chello DMC. In addition, Liberty said Chellomedia’s stakes in its joint ventures with CBS International, A+E Networks, Zon Optimus and certain other partners will also part of the divestment. But Liberty Global will retain its Dutch premium channel business, which consists of its Film1 and Sport1 channels.
Chellomedia is one of the largest international channel groups with distribution to more than 390 million households in 138 countries. But reports say Liberty has been looking for a buyer for Chellomedia since May 2013 when it valued the content division in the region of US$ 800 million to US$ 1 billion.
Based in New York, AMC has been producing programming and movie content for more than 30 years. It owns and operates several of the most popular and award-winning brands in cable television. The company also operates AMC/Sundance Channel Global, an international programming business, and AMC Networks Broadcasting & Technology, a full-service network programming origination and distribution company.
Liberty Global, one of the largest international cable company with operations in 14 countries, said the consolidated assets to be divested generated about US$451 million (€350 million) of revenue during the last twelve-months.
Mike Fries, President and CEO of Liberty Global, said the transaction is attractive from both a valuation and liquidity perspective. “It also simplifies our business and allows us to focus on our core markets and more strategic programming opportunities,” he added.
“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,” said Josh Sapan, President and CEO of AMC Networks. “Together, we can grow these assets and make them even more popular and valuable around the world.”
The transaction is expected to close in the first quarter of 2014 and is subject to limited closing conditions. The transaction, however, is not conditioned on any regulatory approvals.
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