AMC Networks has officially reached a deal to acquire RLJ entertainment, a transaction valued at $274 million.
AMC Networks will pay, in cash, an mixture of about $sixty five million to holders of RLJ amusement's striking standard stock, preferred inventory and warrants not currently owned by using AMC Networks, Robert L. Johnson and their respective associates. RLJ enjoyment will become an oblique subsidiary of AMC Networks, with Johnson and his affiliates owning a 17 p.c stake.
RLJ entertainment encompasses the OTT branded channels Acorn television, commonly used for its British and overseas content material, and UMC (urban film Channel), an SVOD provider created for African American and urban audiences. RLJ entertainment additionally has a controlling pastime in Agatha Christie restricted, providing the enterprise with IP licensing opportunities.
Josh Sapan, president and CEO of AMC Networks, mentioned, "Bob Johnson is a legend for decent reasons that we're the beneficiaries of. His administration group is marvelous, having effectively transitioned Acorn tv from a home video and DVD company to a number one direct-to-purchaser subscription service, and starting to be each Acorn tv and UMC in a competitive ambiance, by using providing magnificent, sought-after content and developing mighty manufacturers. furthermore, RLJ entertainment's majority stake within the Agatha Christie library—a content material company which is still one of the crucial standard and venerable—offers AMC Networks with advantageous IP opportunities."
Sapan brought: "This acquisition furthers AMC Networks' digital approach through meaningfully accelerating our hobbies in direct-to-consumer advert-free subscription features that we personal and control, in addition to presenting us with access to amazing IP as we proceed to diversify our earnings alternatives, putting AMC Networks in a higher place over the long run."
Scott R. Royster, RLJ amusement's lead impartial director and a member of RLJ enjoyment's particular committee of the board centered to consider, negotiate and determine whether to approve AMC's going-inner most notion, commented: "Our mission right through the transaction process turned into to carefully consider AMC's suggestion and negotiate the choicest cost and overall deal phrases accessible for the enterprise's non-affiliate commonplace stockholders. The going-deepest transaction with AMC gives stockholders with instant liquidity, and the merger price represents a considerable premium to the business's unaffected stock price."
Johnson, RLJ leisure's founder and chairman, mentioned, "I thoroughly aid AMC Networks' acquisition of RLJ entertainment. I commend the particular committee for negotiating the transaction for our public stockholders."