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
Teens and young adults now find Instagram and Snapchat more attractive than Facebook, a new study by eMarketer revealed. The report also suggested that for the first time, Snapchat might overtake Facebook in the U.S. by gaining a marketshare of 40.8 percent in social network. A new survey has shown that a majority of parents as well as teens agree that texting or use of cell phones are the biggest distraction to teen drivers. The survey also found that risky driving behavior seems to run in the family. The 2017 Family Safe Driving Report was released by EverQuote Inc., a venture-backed online insurance marketplace. Less than two months after its debut on the New York Stock Exchange, embattled meal-kit delivery company Blue Apron Holdings Inc. has been hit with multiple shareholder lawsuits for its "misleading" and "untrue" statements in its IPO prospectus. The various lawsuits mirror each other in their allegations against Blue Apron, its CEO, CFO, directors and the underwriters of its IPO.
comments powered by Disqus
Follow RTT