AMC Networks acquires RLJ Entertainment in what the company is calling a “going-private” merger.
AMC Networks Acquires RLJ Entertainment: Merger
AMC is acquiring RLJ for around $274 million, and the company will be paying in cash. Around $65 million will be aggregated towards shareholders of RLJ Entertainment’s outstanding common stock and preferred stock.
CEO and President of AMC networks, Josh Spann, said:
“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.”
Company Info
RLJ Entertainment is a digital channel company that serves distinct audiences through its OTT branded channels. The company is known for its high-quality British and international content. It also created the first video-on-demand service to urban and African American audiences. RLJ’s subscription services reached over 800,000 subscribers this year.
AMC Networks currently operates and owns many of cable tv’s most watched brands that deliver high-quality content to its audiences. Its national networks include BBC America, AMC, WE Tv, IFC, and SunDance TV.
Stock Movement
According to Yahoo Finance, AMC Networks (NASDAQ:AMCX) stock ended its day in the green today. AMCX closed the market yesterday at $59.08 a share and opened this morning at $59.13—not a significant jump after the press release. The stock closed the day at $60.21 a share, up $1.13 (1.91%).
RLJ Entertainment (NASDAQ:RLJE) stock soared on the market today, just after the acquisition announcement was made. RLJE closed the market yesterday at $4.86 a share and opened at $6.15. The stock closed today’s market at $6.19 a share, up $1.33 (27.24%).
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