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Liberty Global to sell Chellomedia for $1 billion

Liberty Global, the international cable company with operations in 14 countries, today announced an agreement to sell all of its international content division, Chellomedia, to AMC Networks. The assets being sold include Chello Multicanal, Chello Central Europe, Chello Zone, Chello Latin America and Chello DMC. In addition, Chellomedia’s stakes in its joint ventures with CBS International, A+E Networks, Zon Optimus and certain other partners are also part of the divestment. Liberty Global will retain its Dutch premium channel business, which consists of its Film1 and Sport1 channels.

Liberty Global expects to realize cash proceeds for the above-described assets that are approximately equal to the agreed upon enterprise value of €750 million ($1,035 million). The consolidated assets to be divested generated approximately €350 million ($451 million) of revenue during the last twelve-months.

“This is a great transaction for all parties. Chellomedia is one of the largest international channel groups with distribution to more than 390 million households in 138 countries and I have no doubt that the management team will continue to build tremendous value as part of AMC,” says Mike Fries, President and CEO of Liberty Global. “For Liberty Global, this transaction is attractive from both a valuation and liquidity perspective. It also simplifies our business and allows us to focus on our core markets and more strategic programming opportunities.”

The transaction is expected to close in the first quarter of 2014 and is subject to limited closing conditions. The transaction is not conditioned on any regulatory approvals. Morgan Stanley acted as exclusive financial advisor to Liberty Global on the transaction.

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