AMC Networks has completed its purchase of RLJ Entertainment, adding two new direct-to-consumer SVOD services to its growing portfolio.
AMC previously owned about 25 percent of the company and paid $59 million in cash, or $6.25 per share of common stock, making RLJ Entertainment a privately-owned subsidiary of AMC networks. RLJ founder Robert Johnson has retained a 17 percent stake in the company.
Through the deal, first announced in February, AMC now owns RLJ’s two OTT streaming services: Acorn TV, focused on British mysteries and drama; and UMC, which features original series, documentaries and comedies geared toward African-American and urban audiences.
AMC said that Acorn TV and UMC together had more than 900,000 subscribers at the end of the third-quarter, and were closing in on the 1 million mark.
“This acquisition furthers AMC Networks’ direct-to-consumer strategy and accelerates our interests in subscription video-on-demand services that we own and control,” said Josh Sapan, AMC Networks President and CEO. “We have tremendous respect for RLJ Entertainment’s management team, who have done an exceptional job growing this business and creating powerful direct-to-consumer streaming services in Acorn TV and UMC that reach highly-targeted audiences with popular content, and are now approaching one million subscribers.”
In April, Comcast announced the integration of Acorn TV into its Xfinity set-top boxes, marking the first MVPD integration for the service. Xfinity TV customers can add the service for $4.99 per month.
AMC Networks and RLJ formed a strategic partnership in October of 2016, which involved AMC Networks providing a $65 million initial investment in the company through loans (the loans were later increased to a total of $78 million).
“Our businesses each serve unique audiences and have a strong connection to their viewers. AMC Networks has been an ideal partner as we developed Acorn TV and UMC as preferred destinations and must-have subscriptions for their respective audiences,” said RLJ Entertainment CEO Miguel Penella in a statement. “We will benefit greatly from their continued support, strong management team and their breadth of experience as we continue to grow our business.”
AMC Networks also gets RLJ’s majority stake in Agatha Christie, which manages intellectual property and publishing rights to a library of mystery fiction. 21st Century Fox adapted “Murder on the Orient Express” last year, and has forthcoming adaptations planned. Agatha Christie also inked a multi-show deal with BCC for seven dramas based on the author’s works.
“As we continue to focus on owning more IP and extending our content franchises, Agatha Christie Ltd. represents a great addition to our portfolio,” Sapan added.
