Chellomedia to Acquire International MGM Networks

LONDON: Chellomedia is acquiring a number of international networks from the Metro-Goldwyn-Mayer Studios bouquet.

MGM holds on to its network businesses in the U.S., Canada, U.K., Germany and its joint-venture interests in Brazil and Australia. Chellomedia assumes ownership of channels in Spain, Turkey, Israel, Benelux and Poland, India and Southeast Asia as well as the pan-EMEA channels and associated feeds.

Chellomedia has also acquired the remaining 50-percent stake of MGM Lat America and the balance of its JV in Central Europe.

The two companies have also entered into a long-term programming deal to allow the channels to continue to air titles from MGM’s library.

“Chellomedia has the scale to bring the MGM Networks business to a new level and we are excited to continue our relationship with this platinum standard partner,” said Roma Khanna, MGM’s president of the television group and digital. “MGM is not exiting the channel business completely. We are instead shifting our channel focus to the territories of the U.S., Canada, U.K. and Germany along with our joint-venture territories of Brazil and Australia. We will continue to grow our global television licensing strategy to generate increased revenue and cash flow from our library and new product, while developing new strategic options within former channel territories and unlocking shareholder value through the gain recognized by the asset sale.”

Niall Curran, the president of Chellomedia, added, "The MGM channels are superb assets with a great brand and fit extremely well within our existing channel portfolio, which we have built successfully over the last ten years. We see lots of scope to enhance the movie lover’s experience through choice and control and look forward to working with operators around the world to develop this much loved classic movie channel for a TV on demand world."