CBS Corporation (NYSE: CBS.A and CBS) and Lionsgate (NYSE: LGF) announced today that the companies have entered into a 50/50 partnership for the highly distributed entertainment cable network TVGN and the website TVGuide.com. The basic cable network, available in more than 80 million homes, will continue to be entertainment-focused, with a specific rebranding and programming strategy to be announced at a later date.
The venture will combine CBS's programming, production and marketing assets with Lionsgate's resources in motion pictures, television and digitally delivered content. The new ownership structure will be comprised of the company with the #1 broadcast network and many of the top first-run syndication series ("Entertainment Tonight," "OMG! Insider") and the studio that distributes the blockbuster "Hunger Games" and "Twilight" franchises and produces such award-winning dramas as "Mad Men."
Under the terms of the deal,
CBS will acquire a 50% stake in TVGN and TVGuide.com.
CBS plans to purchase the ownership interest currently held by One Equity Partners (OEP), the global private equity investment arm of JPMorgan Chase. The deal closed on signing today.
"This is a strategic way for
CBS to use its content brands and gain access to a highly distributed basic cable network that has a lot of upside," said Leslie Moonves, President and Chief Executive Officer,
CBS Corporation. "Lionsgate, led by my friend Jon Feltheimer, is a forward-thinking content company and a great partner for us here. We're excited to bring CBS's programming and production assets to the venture, and work with Lionsgate to rebrand and grow a channel that will be increasingly valuable to our carriage partners."
"We couldn't be in business with a better blue-chip strategic partner than
CBS or a more visionary CEO than our friend Les Moonves," said Lionsgate Chief Executive Officer Jon Feltheimer and
Vice Chairman Michael Burns. "Their track record speaks for itself, and we believe that the combination of our two brands and our complementary assets will elevate TVGN to the next level of performance and enable it to fulfill its promise as a significant branded entertainment channel."
Moelis & Company and Wachtell, Lipton, Rosen and Katz advised TVGN on the transaction.
CBS Corporation (NYSE: CBS.A and CBS) is a mass media company that creates and distributes industry-leading content across a variety of platforms to audiences around the world. The Company has businesses with origins that date back to the dawn of the broadcasting age as well as new ventures that operate on the leading edge of media.
CBS owns the most-watched television network in the U.S. and one of the world's largest libraries of entertainment content, making its brand - "the Eye" - one of the most recognized in business. The Company's operations span virtually every field of media and entertainment, including cable, publishing, radio, local TV, film, outdoor advertising, and interactive and socially responsible media. CBS's businesses include
CBS Television Network,
The CW (a joint venture between
CBS Corporation and Warner Bros. Entertainment),
Showtime Networks,
CBS Sports Network, Smithsonian Networks, Simon & Schuster,
CBS Television Stations,
CBS Radio,
CBS Outdoor,
CBS Television Studios,
CBS Global Distribution Group,
CBS Interactive,
CBS Consumer Products,
CBS Home Entertainment,
CBS Films and
CBS EcoMedia. For more information, go to
www.cbscorporation.com.
