Liberty Global plans asset sale for about $1B

[October 29, 2013]  (AP) -- Liberty Global plans to sell nearly all of its Chellomedia international content division to AMC Networks in a deal worth about $1.04 billion.

The international cable TV and Internet provider said Monday it will include Chello Multicanal, Chello Central Europe, Chello Zone, Chello Latin America and Chello DMC in the deal as well as stakes in several joint ventures. Those include ventures involving CBS International, A+E Networks and Zon Optimus.

Liberty Global plans to keep its Dutch premium channel business.

The assets to be sold generated about $451 million in revenue during the 12-month period that ended June 30.

Liberty Global CEO Mike Fries said in a statement that the deal helps his company simplify its business and focus on core markets and strategic programming.

The deal is expected to close in next year's first quarter

AMC Networks Inc. said in a separate statement that the deal will give it an array of television channels that are distributed to more than 390 million households in 138 countries. Chellomedia's channels include Canal Hollywood, Cinematk, and America Sports.

Liberty Global PLC has operations in 14 countries. It completed a roughly $24 billion acquisition of Virgin Media earlier this year, in a deal that created one of the world's largest providers of cable TV, Internet and phone service.

That deal expanded Liberty's global reach with Virgin's United Kingdom presence. The combined company offers video, voice and broadband services to 25 million customers, mainly in Europe. Company officials said in August that deal marked an important milestone in Liberty's push to consolidate a fragmented European cable market.

Liberty Global PLC's U.S. shares finished at $80.16 on Friday. AMC Networks Inc. shares ended the week at $70.36.

[Associated Press]

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.