This week AMC Networks closed on their deal to buy Rober Johnson RLJ Entertainment the parent company behind subscription services Acorn TV and the Urban Movie Channel. This deal was first announced back in July but only officially closed this week.
AMC already had a part ownership of RLJ Entertainment with a 30.1% share. Now AMC is spending $65 million to shareholders of RLJ common stock in a transaction that will see RLJ Entertainment become a private company.
Back when this deal was first announced AMC CEO Josh Sapan. said that “this acquisition furthers AMC Networks’ digital strategy by meaningfully accelerating our interests in direct-to-consumer ad-free subscription services that we own and control, in addition to providing us with access to strong IP as we continue to diversify our revenue opportunities, placing AMC Networks in a stronger position over the long term.”
Josh Sapan went on to say “Bob Johnson is a legend for good reasons that we are the beneficiaries of. His management team is extraordinary, having successfully transitioned Acorn TV from a home video and DVD business to a leading direct-to-consumer subscription service, and growing both Acorn TV and UMC in a competitive environment, by offering excellent, sought-after content and creating strong brands. In addition, RLJ Entertainment’s majority stake in the Agatha Christie library—a content brand which remains one of the most popular and venerable—provides AMC Networks with valuable IP opportunities.”
“I fully support AMC Networks’ acquisition of RLJ Entertainment. I commend the Special Committee for negotiating the transaction for our public stockholders.” Said Robert L. Johnson, RLJ Entertainment’s Founder and Chairman.
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