Liberty to put Chellomedia up for sale
Editor | 21-05-2013
Liberty Global is said to be on the verge of revealing how it is partially paying for its recent acquisition spree of leading European cable assets – the sale of its Chellomedia TV business.
According to reports in the Wall Street Journal (WSJ), Liberty is lining up a sale of its asset that is valued in the region of $800 million to $1 billion, partially offsetting the £15 billion it is paying to acquire Virgin Media, and the US media company is also said to be preparing an attack on Germany's largest cable operator Kabel Deutschland.
Liberty’s international content division, Chellomedia has six operating businesses — Chello Benelux, Chello Central Europe, Chello Latin America, Chello Multicanal, Chello Zone and the broadcast unit Chello DMC — operating in 13 countries with a current portfolio of 68 TV channels broadcasting to 382 million TV households worldwide. Of the channels, 48 are fully owned and 20 are joint ventures with firms such as A+E, CBS, Polsat and Zon Multimedia. For the year ended 31 December 2012, the company posted revenues of $514.0 million.
The WSJ added that Liberty’s chairman John Malone has already hired advisers to help arrange a deal and is in talks with a handful of suitors, none of which it could name in its report.