BET Founder Buys Image, Acorn

BETHESDA: Robert L. Johnson, the founder of BET, has reached a deal to acquire the U.S. independent distributors Image Entertainment and Acorn Media Group.

The combined company, RLJ Entertainment, will be listed on NASDAQ, according to a press release announcing the transaction. Johnson will serve as executive chairman of the new company.

Image’s common stockholders will receive shares in RLJ Entertainment, while preferred stockholders will receive $22.6 million in cash and promissory notes. Acorn’s shareholders will receive $105 million plus stock and warrants in the new company. Once the transaction is completed, RLJ Entertainment will be 11-percent owned by Image shareholders and 5-percent owned by Acorn stockholders. Johnson’s RLJ will hold 74-percent.

"RLJ Entertainment will have a broad strategy for financial growth by providing content to all media platforms including broadcast and cable, DVD and Blu-Ray, digital downloads and digital streaming,” Johnson said. “Image Entertainment is a leader in the urban, independent film, comedy, and horror genres, and Acorn Media Group, founded by Peter Edwards, who will serve as vice chairman of RLJ Entertainment, is a dynamic, brand-oriented company that provides engaging British drama, such as the Agatha Christie library, to its target audiences.”

He continued, “I am excited to work with the management team to run a company that will increase the opportunity for independent and urban-oriented producers to reach a broader audience across the expanding number of media outlets. In a growing demand for global content, RLJ Entertainment will be well positioned by having a presence in the United States, Canada, Australia, and the United Kingdom.”

"I believe combining Acorn Media Group with Image Entertainment under the RLJ Entertainment brand and with Bob Johnson as executive chairman provides us with a more robust content library and a larger platform for continued growth," added Ted Green, the chairman and CEO of Image Entertainment, who will serve as the CEO of RLJ Entertainment after the completion of the business combination.

"I am thrilled that Acorn Media Group, a company founded with a vision for British programming and a direct to consumer channel, will become part of RLJ Entertainment," commented Miguel Penella, the CEO of Acorn Media Group. "We expect to greatly benefit from Bob Johnson’s vision as we continue to acquire library content and build Acorn TV.”