Metro-Goldwyn-Mayer (MGM) is set to acquire the 80.91 percent aggregate membership interests in the pay-TV network EPIX held by Viacom, Paramount and Lionsgate for approximately $1.032 billion.<\/p>\n
The price is based on a total value for the company of $1.275 billion (inclusive of $75 million of distributions to the partners). Viacom and Lionsgate currently own 49.76 percent and 31.15 percent equity interests, respectively.<\/p>\n
The transaction will give MGM control over EPIX\u2019s four linear pay-TV channels (EPIX, EPIX2, EPIX Hits, EPIX Drive-In), which are available across the U.S. via cable, satellite and telco distributors. EPIX is also available through a range of digital outlets.<\/p>\n
Gary Barber, the chairman and CEO of MGM, said: \u201cThe addition of EPIX provides MGM with a premier distribution platform that complements our strong stable of new and library content in both film and television. The acquisition creates increased revenue diversity, new opportunities for growth, and earnings accretion for the benefit of stockholders. I would like to thank Jon Feltheimer and his colleagues at Lionsgate and Bob Bakish and his colleagues at Viacom and Paramount, for their unwavering commitment to building the value of this premium service, and their continued commitment to provide their theatrical releases for years to come. We also look forward to welcoming Mark Greenberg and his team to the MGM family. With Mark\u2019s strong leadership and dedicated management team, EPIX\u2019s innovative platform and premium film and television content, EPIX is well positioned to capitalize on the evolving patterns of content consumption in a dynamic distribution landscape.\u201d<\/p>\n
Bob Bakish, the president and CEO of Viacom, said: \u201cTogether with our partners, we are proud to have built EPIX into a strong, differentiated and valuable brand. As Viacom executes against its new strategy, we welcome the opportunity to strengthen our balance sheet by realizing the value of our equity investment, while also extending the successful commercial partnership between EPIX and Paramount Pictures with a new multiyear output agreement. MGM will be an outstanding steward of the network, and we look forward to working with EPIX to bring its subscribers even more premium entertainment for years to come.\u201d<\/p>\n
\u201cWith our partners at MGM and Viacom, we are proud to have built a technologically advanced, consumer-facing platform driven by great content,\u201d added Lionsgate’s CEO, Jon Feltheimer. \u201cThough we are shifting our investment focus to our wholly owned platforms, we wish CEO Mark Greenberg and the rest of the EPIX team, along with Gary Barber and his colleagues at MGM, great success in continuing EPIX\u2019s strong growth in the future.\u201d<\/p>\n
Mark Greenberg, the president and CEO of EPIX, commented: “This agreement between our founding partners MGM, Lionsgate and Viacom reflects the significant value already created in this joint-venture, while acknowledging the accelerated growth potential of EPIX with a single, focused and committed owner. We are proud to have built this very successful business and we want to thank our partners for their investment, strategic engagement and support since our founding. The Lionsgate and Viacom priorities have evolved in recent months, and now is the right time for them to capitalize on their initial investment and focus their attention on their other businesses, while they continue to provide EPIX with great studio movies and original series for years to come. As we look forward, we are excited about the future of EPIX as a wholly-owned business of MGM. Gary Barber and the team at MGM have the resources, understanding and dedication to our near and long-term success that are essential in this rapidly evolving media and entertainment landscape where the power of great content is critically important.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Metro-Goldwyn-Mayer (MGM) is set to acquire the 80.91 percent aggregate membership interests in the pay-TV network EPIX held by Viacom, Paramount and Lionsgate for approximately $1.032 billion.<\/p>\n","protected":false},"author":350,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[69],"tags":[301,255],"class_list":["post-7864","post","type-post","status-publish","format-standard","","category-top-stories","tag-epix","tag-mgm"],"yoast_head":"\n