Liberty Global Sells Bulk Of International Content Unit to AMC for $1 BillionAssets Being Sold Include Chello Multicanal, Chello Central Europe, Chello Zone, Chello Latin America and Chello DMC 10/28/2013 8:03 AM Eastern
Liberty Global has struck a deal to sell “substantially all" of its international content division, Chellomedia, to AMC Networks for about $1.03 billion, noting that the sale will allow the MSO to focus on core markets and “more strategic programming opportunities.”
According to terms of the deal announced Monday, the assets being sold include Chello Multicanal, Chello Central Europe, Chello Zone, Chello Latin America and Chello DMC. In addition, Chellomedia’s stakes in its joint ventures with CBS International, A+E Networks, Zon Optimus and certain other partners are also part of the divestment, Liberty Global said.
Liberty Global will retain its Dutch premium channel business, which includes Film1 and Sport1 channels.
The consolidated assets to be divested generated approximately $451 million of revenue during the last twelve-months ended June 30, 2013, Liberty Global said.
“This is a great transaction for all parties. Chellomedia is one of the largest international channel groups with distribution to more than 390 million households in 138 countries and I have no doubt that the management team will continue to build tremendous value as part of AMC,” Liberty Global president and CEO Mike Fries said, in a statement. “For Liberty Global, this 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.”
Liberty Global said it expects the deal to close in the first quarter of 2014.
Morgan Stanley acted as exclusive financial advisor to Liberty Global on the transaction