Quick Facts
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

RLJ Acquisition To Buy Image Entertainment And Acorn Media Group

4/2/2012 7:39 AM ET

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.

Register
To receive FREE breaking news email alerts for Image Entertainment Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Chipmaker Advanced Micro Devices Inc. said Thursday after the markets closed that its first quarter loss narrowed from last year, helped by strong revenue growth in its graphics and visual solutions business. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. After trending higher over the past few sessions, stocks showed a lack of direction throughout the trading day on Thursday. The major averages spent the session bouncing back and forth across the unchanged line before ending the day mixed. While the major averages closed on opposite sides of the unchanged line, they all showed only modest moves. U.S. Secretary Of State John Kerry said Thursday that he and his counterparts from Russia, Ukraine and the European Union have reached an agreement on a preliminary plan for ending the ongoing crisis in Ukraine. Kerry was speaking at the end of the Ukraine contact group's first meeting, comprising the foreign ministers of Russia, Ukraine, the EU and the U.S., in the Swiss city of Geneva.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.