AMC Networks Inc. said on Monday that it plans to acquire the outstanding shares of RLJ Entertainment Inc. not already owned by AMC Networks or entities affiliated with media magnate and co-founder of BET, Robert L. Johnson. AMC is buying the shares for $4.25 a share in cash, in a deal valuing RLJ Entertainment at roughly $60 million. The offer price represents a 10% premium to RLJ’s Friday closing price. In the acquisition, AMC plans for RLJ Entertainment to become a privately owned subsidiary, with a minority stake held by Robert L. Johnson. Last October, AMC Networks formed a strategic partnership with RLJ Entertainment, investing $65 million in the company in the form of loans. The company said that Citigroup Global Markets is serving as financial advisor and Sullivan & Cromwell LLP is acting as legal counsel to AMC Networks for the transaction. Shares of AMC Networks have declined nearly 15% in the last 12 months, while shares of RLJ Entertainment have climbed more than 68%. By comparison, the S&P 500 index is up 16% and the Dow Jones Industrial Average is up roughly 22%.
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