Liberty Global will sell its international content division Chellomedia to AMC Networks for $1 billion. The networks being sold include Chello Multicanal, Chello Central Europe, Chello Zone, Chello Latin America and Chello DMC. In addition, Chellomedia’s JV stakes with CBS International, A+E Networks, Zon Optimus and other partners are also part of the divestment. Liberty Global will retain its Dutch premium channel business, including Film1 and Sport1 channels.
The assets generated some $451 million of revenue during the last twelve-months ended 6/30.
Meanwhile, Liberty Global’s preliminary takeover bid for Dutch cable TV operator Ziggo was recently rejected by the Ziggo board. Liberty had increased its stake in Ziggo to 28.5%, the company said 7/27. Dutch law would require Liberty, Ziggo’s biggest shareholder, to make a bid for all of Ziggo should it acquire a stake greater than 30%.
Said Mike Fries, Liberty Global CEO: “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. 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.”
The transaction is expected to close in Q1.
