logo
Share SHARE
FONT-SIZE Plus   Neg

RLJ Acquisition To Buy Image Entertainment And Acorn Media Group

Robert Johnson, Chairman of The RLJ Companies and founder of Black Entertainment Television (BET), announced that RLJ Acquisition Inc. agreed to acquire each of Image Entertainment Inc. (DISK.PK) and Acorn Media Group Inc. to form one of the largest independent distributors of digital and video content worldwide. The new combined company would be named RLJ Entertainment Inc. Shares of the new company are anticipated to trade on the NASDAQ Stock Market.

RLJ Entertainment, where Johnson would serve as Executive Chairman, and would leverage his substantial expertise in media, consumer branding, and strategic relationships to accelerate growth and drive value creation.

Pursuant to the agreements, the common stock holders of Image Entertainment would receive from RLJ Entertainment 2.14 million shares of RLJ Entertainment and the holders of preferred stock of Image Entertainment would receive aggregate consideration of $22.6 million, which would be paid in cash and in the form of promissory notes to the holders of preferred stock of Image Entertainment. Acorn Media Group's shareholders would receive $105 million in cash, 1.0 million shares of RLJ Entertainment and warrants to buy 1.0 million shares of RLJ Entertainment.

After the business combination's close, the current stockholders of Image Entertainment and Acorn Media Group would own about 11% and 5% of RLJ Entertainment, respectively, assuming no redemptions. The current stockholders of the company would own some 74% of RLJ Entertainment, assuming no redemptions.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Monsanto Company (MON) announced the company now expects fiscal 2016 as-reported EPS to be at the low end of the $3.36 to $4.14 adjusted range. In April, the company projected its fiscal 2016 as-reported earnings guidance to be in a range of $3.72 to $4.48 per share. The company adjusted its full-year... Nintendo hasn't shown off its upcoming Next Generation console at E3, the major gameshow, on fears of others copying it, reports said quoting video game developer Shigeru Miyamoto. At an investors meeting in Japan, the gaming console maker however revealed that it continues to look into the possibility of developing a virtual reality headset, but affordable and comfortable one. Kellogg's is entering into restaurant business with the opening of a new cafe in New York City, exclusively for cereals that may cost around $8 per bowl, reports said. The cafe, to be known as Kellogg's NYC, will be launched officially on July 4 in the heart of Times Square.
comments powered by Disqus
Follow RTT