Metro-Goldwyn-Mayer To Buy Full Ownership Of EPIX

(RTTNews) - Metro-Goldwyn-Mayer or "MGM", Viacom Inc. (VIAB, VIA), and Lionsgate (LGF.A, LGF.B), the founding members of the premium pay television network, EPIX, announced an agreement for MGM to acquire the 80.91% aggregate membership interests in EPIX held by Viacom, Paramount and Lionsgate for approximately $1.032 billion, 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% and 31.15% equity interests, respectively.

The deal will give MGM control over EPIX's four linear pay television 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 distributors.

As part of the transaction, Paramount Pictures and Lionsgate will continue to provide their first-run theatrical releases to EPIX under multi-year agreements. EPIX's content also features original programming including its critically acclaimed original series Berlin Station, Golden Globe nominated Graves and, premiering in 2017, Get Shorty, as well as original documentaries, music and comedy specials. Launched in October 2009, EPIX pioneered the development and proliferation of "TV Everywhere," allowing subscribers to watch the content they want, when and where they want.

The 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," said Gary Barber, Chairman and CEO of MGM.

The transaction is subject to regulatory approval and is anticipated to close this month.