AMC Networks to Buy Liberty Global Assets for $1 Billion

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By Trey Thoelcke Published
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AMC Networks Inc. (NASDAQ: AMCX), which brought you “Breaking Bad,” “Mad Men” and “The Walking Dead,” said Monday it has agreed to buy Chellomedia, the international content unit of Liberty Global PLC (NASDAQ: LBTYA), for about $1.04 billion.

Liberty Global became one of the world’s largest providers of cable TV, Internet and phone service earlier this year when it completed its acquisition of Virgin Media for approximately $24 billion.

The businesses being acquired by AMC include Chello Central Europe, Chello Latin America and Chello Zone, as well as stakes in several joint ventures. These assets generated about $451 million in revenue during the 12-month period that ended June 30.

Chellomedia currently owns and operates some 68 branded TV channels and runs a suite of digital, on demand and broadband services in Europe. Its channels and feeds reported reach 382 million homes.

Guggenheim Securities was the adviser for AMC on the deal, and Morgan Stanley advised Liberty Global. The transaction is expected to be completed in the first quarter of 2014.

AMC is scheduled to report its third-quarter results next week. The consensus forecast calls for per-share earnings to have risen more than 41% year-over-year to $0.87, while revenues totaled $394.64 million, or about 18.8% higher. Earnings fell short of analysts’ estimates in two of the past four quarters though.

Shares of AMC were inactive in premarket trading but closed at $70.36 Friday, in a 52-week range of $46.25 to $72.46. The mean price target is $76.64.

Shares of Liberty Global also were inactive in premarket trading but ended last week at $80.16. The 52-week range is $54.05 to $82.50. The mean price target is $92.00.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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