LodgeNet Entertainment signed a definitive agreement with Liberty Media to buy rival hotel pay-per-view programming supplier On Command from Liberty’s Ascent Entertainment unit.
The deal, which would consolidate the hotel pay TV programming sector, would see LodgeNet acquire all of the stock of On Command parent Ascent Entertainment for $380 million. LodgeNet said the purchase price will be paid at closing by issuing 2.05 million shares of LodgeNet common stock and $332 million cash.
PAR Capital is helping LodgeNet seal the deal by purchasing 1 million shares of common stock for $23 million.
“This is a compelling transaction across all strategic, operating, and financial aspects,” Scott Petersen, LodgeNet President and CEO, said in a prepared statement. “This is another significant step forward in the execution of our strategy to expand our networks and integrate a broader range of solutions for our customers.”
Bear Stearns & Co. represented LodgeNet in the transaction. Lehman Brothers and Daniels & Associates represented Liberty Media.
