Epix is seven years young in the industry, yet the network still managed to create its own competitive space through its premium content. This is the result of a joint venture between Metro-Goldwyn-Mayer, Lion Gate Entertainment, and Paramount Pictures. The network promotes original materials such as comedy and music specials, documentaries, and series. Epix managed to become one of the major premium channels in the U.S. in just a short span. As of recently, MGM made steps towards buying the entire ownership over this successful product.
MGM Is After Premium Content Broadcasted through All Modern Channels
On Wednesday, the founding members of Epix announced that MGM is going to be the majority shareholder of the project Epix. Metro-Goldwyn-Mayer is after acquiring 80.91% of all the shares in Epix that are currently owned by Paramount, Viacom, and Lionsgate. The entire company is valued at a total of $1.275 billion. However, MGM will sign a contract of approximately $1.032 billion.
MGM started enriching its premium content portfolio as early as last year. The media company settled a takeover with United Artist Media Group which initiated the desired expansion into this developing niche. The second deal of this kind concerns Epix. Once the agreement is successfully concluded, MGM will have total control over four television channels. These are EPIX, EPIX2, EPIX Hits, and EPIX Drive-In. They targeted only the U.S. market through cable, telco distributors, and satellite.
On the other hand, Epix is not going to lose its market advantage after the deal is honored. On the contrary, Lionsgate and Paramount Pictures will continue to issue their first-run, new, and original content for the TV channel. This partnership will be mentioned in the contract and will provide a multi-year partnership.
The Billion Deal Might Come into Effect by the End of the Month
The CEO and chairman of MGM, Gary Barber, believes that this latest acquisition is going to enhance their own powerful line of content in television and film. It is a new opportunity for the media company to find new sources of funding for its multitude of projects. The CEO applauded the perseverance of Paramount, Viacom, and Lionsgate to make this merger come true.
“I would like to thank Jon Feltheimer and his colleagues at Lionsgate and Bob Bakish and his colleagues at Viacom and Paramount, for their unwavering commitment to building the value of this premium service, and their continued commitment to providing their theatrical releases for years to come.”
The acquisition is now waiting for regulatory approval. If everything is in order, the merger might come into effect by the end of the month. MGM is already preparing some refreshing productions for its new TV channel, such as Get Shorty. The company is on a successful rampage thanks to its quality works such as Emmy Award, Golden Globe Award, Fargo, Vikings, and Teen Wolf.
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