Chellomedia acquires MGM Networks

Chellomedia is to purchase the MGM Networks channel business in Spain, Turkey, Israel, Benelux and Poland, India and South East Asia. The Liberty Global business will take the pan-EMEA channel and its associated feeds, but MGM will retain its network businesses in US, Canada, UK, Germany and its joint venture interests in Brazil and Australia.

Earlier, it was announced that CBS would take a 30% stake in Chellomedia’s European entertainment channel business.

In addition, Chellomedia has acquired the remaining 50% of MGM Latin America, which Liberty Global and MGM have operated as a joint venture since 1998, as well as the balance of its JV in Central Europe.

The channels will continue to operate under the MGM brand and draw on the extensive MGM library that includes Rain Man, Silence of the Lambs, Gorky Park and The Madness of King George.

“Chellomedia has the scale to bring the MGM Networks business to a new level and we are excited to continue our relationship with this platinum standard partner,” said Roma Khanna, MGM’s president, Television Group and Digital.

“The MGM channels are superb assets with a great brand and fit extremely well within our existing channel portfolio, which we have built successfully over the last ten years,” added Niall Curran, the President of Chellomedia. “We see lots of scope to enhance the movie lover’s experience through choice and control and look forward to working with operators around the world to develop this much loved classic movie channel for a TV on demand world.”

Chellomedia currently produces and distributes 56 channels, including 19 joint ventures.

The MGM Networks transaction, which includes 13 channels, feeds and a JV, will increase the footprint of Chellomedia’s channel portfolio to 382 million TV households.