Liberty Global in US$1b deal to sell channels

NEW YORK CITY: Liberty Global, part of a media empire controlled by US tycoon John Malone, said Monday it was selling most of its international television channels to AMC Networks for some US$1 billion.

Liberty, which claims to be the largest international cable company with operations in 14 countries, said it was selling its international content division Chellomedia.

The division includes 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 other partners are also part of the deal, but Liberty Global will retain its Dutch premium channel business, including the Film1 and Sport1 channels.

The enterprise value of the deal was set at 750 million euros or US$1.035 billion.

"This is a great transaction for all parties" said Liberty global chief Mike Fries.

"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."

Liberty Global earlier this year acquired Britain's Virgin Media in a deal worth 17.2 billion euros.

Liberty Global brands also include UPC, Unitymedia, Kabel BW, Telenet and VTR.

Read the original here:
Liberty Global in US$1b deal to sell channels