Media

AMC Networks to Buy Liberty Global Assets for $1 Billion

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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