AMC Networks Inc. is buying Liberty Global’s international content division Chellomedia for $1.04 billion, the companies said Monday.
The assets being sold include Chello Multicanal, Chello Central Europe, Chello Zone, Chello Latin America and Chello DMC. Chellomedia’s stakes in its joint ventures with CBS International, A+E Networks, Zon Optimus and certain other partners are also included. Liberty Global will retain its Dutch premium channels, Film1 and Sport1.
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“This is a great transaction for all parties,” said Mike Fries, president and CEO of Liberty Global. “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 the first quarter of 2014, and is subject to limited closing conditions.