AMC Networks Offers to Buy RLJ Entertainment in $60M Deal

Company, owned by Robert Johnson, streams OTT channels
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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).

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