AMC Networks has acquired the remaining 50.1% stake in BBC America, gaining full ownership and operational control of the joint venture channel. The deal, which closed on November 1st, sees AMC Networks paying $42 million in cash to BBC Studios to complete the acquisition.
Expanding Ownership:
AMC Networks has held a 49.9% stake in BBC America since 2014, when it purchased the share for $200 million from BBC Worldwide. With this new transaction, AMC Networks now has complete control over the channel’s operations and programming.
Financial Implications:
According to AMC Networks’ Q3 earnings results, the company will fully consolidate BBC America and eliminate $132.9 million of redeemable non-controlling interest. “Going forward, AMC Networks will no longer be making any related cash distributions to non-controlling interests,” the company stated.
Continued Collaboration:
Despite the change in ownership, AMC Networks emphasized its continued close relationship with BBC Studios to ensure the quality and consistency of BBC America’s programming.
“We now own 100% of this iconic channel, with full operational control, and look forward to what the future holds,” said CFO Patrick O’Connell during the earnings call.
BBC Studios’ Strategic Shift:
The sale of BBC America may indicate a shift in BBC Studios’ content distribution strategy in the U.S. In February, BBC Studios acquired full ownership of the streaming platform BritBox International, which offers “best of British” content in North America and other international markets.
Rebecca Glashow, BBC Studios CEO of global media and streaming, expressed excitement about the continued growth of BritBox International with the full backing of the BBC.
“Doctor Who” and Documentary Streaming:
In 2022, BBC Studios also moved its popular “Doctor Who” franchise to Disney+ as part of an international distribution deal. The BBC also operates a premium ad-free documentary streaming service in North America.
This acquisition marks a significant development for AMC Networks, providing full control over a well-established channel with a strong brand identity. It also reflects the evolving strategies of both AMC Networks and BBC Studios in navigating the changing landscape of television and streaming.