Ascent Media to Sell Another Part of Its Business in $120 Million Deal
Encompass Digital Media will acquire the content distribution arm of the firm, which is partly owned by Liberty Media.
NEW YORK - Ascent Media, in which John Malone’s Liberty Media is the majority shareholder, is selling another part of its business.
Encompass Digital Media, a privately-held services provider to TV networks and their distributors, sports leagues and government clients, said Friday it will acquire the global content distribution business of Ascent. It will pay approximately $113 million in cash and assume about $7 million in debt.
Just the other week, Ascent inked an agreement to sell its creative services and media services divisions to Deluxe Entertainment Services Group for about $68 million in cash plus an unspecified amount of debt.
Encompass said the deal will expand its scale and geographic footprint by combining its Los Angeles and Atlanta operations with Ascent’s broadcast facilities in the New York metro area, Minnesota, Burbank, Singapore and London.
“Acquiring Ascent’s content distribution business positions Encompass as a leading provider in outsourced media solutions by significantly enhancing our ability to meet the needs of broadcasters and media companies looking to benefit from the latest technology and rationalize costs with a highly credible global partner,” said CEO Simon Bax.
Following the completion of the deal, expected for the first quarter, Encompass will have approximately 950 employees.
Its services include network origination, centralcasting for TV stations, disaster recovery, satellite and fiber transmissions, satellite uplink trucks and digital media services.
Its clients include government entities, the NHL and many entertainment industry players, including Sony, NBC Universal, CBS, Disney/ABC and ESPN, BBC Worldwide, MTV, Discovery Networks, DirecTV Sports Networks, NFL Network and YES Network.