AMC Networks said it has proposed to acquire the outstanding shares of Robert Johnson’s RLJ Entertainment for $4.25 a share, which would value the company at about $60 million.
RLJ operated branded over-the-top channels including Acorn TV and Urban Movie Channel.
If the transaction is completed, RLJ would become a privately owned subsidiary of AMC Networks, with a minority stake still held by Johnson.
Related: The Five Spot: Robert Johnson
The companies formed a strategic partnership in 2016 that included AMC investing $65 million in RLJ via loans. Those loans have since increased to $78 million. AMC received warrants that could be converted to give it 50.1% of RJL. AMC currently owns about 25% of RLJ, and Johnson owns 47%.
AMC said the offering price represents a 10% premium to RLJ’s closing stock price on Friday (Feb. 23).