AMC Networks Offers to Buy RLJ Entertainment in $60M Deal

AMC Networks said it has proposed to acquire the outstanding shares of Robert Johnson’s RLJ Entertainment for $4.25 a share, which would value the company at about $60 million.

RLJ operated branded over-the-top channels including Acorn TV and Urban Movie Channel.

If the transaction is completed, RLJ would become a privately owned subsidiary of AMC Networks, with a minority stake still held by Johnson.

Related: The Five Spot: Robert Johnson

The companies formed a strategic partnership in 2016 that included AMC investing $65 million in RLJ via loans. Those loans have since increased to $78 million. AMC received warrants that could be converted to give it 50.1% of RJL. AMC currently owns about 25% of RLJ, and Johnson owns 47%.

AMC said the offering price represents a 10% premium to RLJ’s closing stock price on Friday (Feb. 23).

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.