Discovery, Liberty Global buy All3media

Friday 9 May 2014 | 09:27 CET | News

Discovery Communications and Liberty Global have formed a 50:50 joint venture to acquire All3Media from its founders and Permira for an enterprise value of GBP 550 million. The amount represents a EBITDA multiple of around 8.5 times. The acquisition will be funded through a combination of equity and new non-recourse credit facilities raised at All3Media, with Discovery Communications and Liberty Global each paying around GBP 90 million in cash.

Under the terms of the joint venture agreement, the companies will not consolidate the All3Media group into their financial statements. The group will continue to operate under its own name, with its own executive management team, and its existing creative operating model as a standalone, independently managed entity. The joint venture partners will put their focus on servicing its global broadcasting partners.

Liberty Global CEO Mike Fries said he expects the deal to provide very attractive financial returns. He added that the buy is the first step in the company’s mission to own and develop content assets that support its core distribution platform across Europe.

All3Media produces and distributes TV programming. The company is headquartered in London with a strong presence in the US, Germany, the Netherlands and New Zealand and 26 creative centres in the world. For the fiscal year to end August, All3Mdia CEO Farah Ramzan Golant reported revenues at GBP 505 million.

 The acquisition is expected to close in the third quarter, pending regulatory approvals.

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