John Malone's Liberty Global Eyes Sale of TV Channels Arm (Report)
John Malone’s international cable operator Liberty Global has put its TV channels division Chellomedia on the auction block, the Wall Street Journal reported.
The newspaper said a deal could be valued at $800 million to $1 billion, according to people familiar with the situation. If a deal is reached, it could come in the form of a full or partial sale or a joint venture.
Chellomedia's 68 networks cover such genres as sports, movies and cooking. They are available in more than a dozen countries, including in Germany, Belgium, Eastern Europe and Latin America, and reach about 390 million households worldwide. The company fully owns 48 of the channels, with the rest being joint ventures.
It wasn't immediately clear why Liberty Global, which is in the process of acquiring U.K. cable operator Virgin Media, was looking at selling Chellomedia. One analyst suggested it may be that the company feels it doesn't have the necessary scale and wants to focus on its cable systems business.
Chellomedia had revenue of $514 million in 2012, a small portion of Liberty Global's approximately $10 billion overall revenue.