Liberty Media Corp. has contacted its co-owners in American Movie Classics — Cablevision Systems Corp. and NBC — to terminate their partnership, a move that will require either of the two sides to assume full control.
A spokeswoman for Liberty said the company has reached an agreement with a third party for a 270-day loan to finance a buyout of the NBC-Cablevision stake should the two decide to sell.
A buy-sell agreement between Liberty, which owns 50% of the programming company, and Cablevision and NBC, which control the other half, requires one of the two sides to purchase all of American Movie Classics once one of the partners decides to end the relationship.
As reported by Federal Filings Inc., Cablevision on Aug. 2 received a buy-sell notice from Liberty valuing the classics channel at $ 390 million. Under the pact Cablevision must, at the stated value, either sell its 25% stake in the partnership to Liberty or buy Liberty’s share by Sept. 16. Liberty values either half of the company at $ 150 million to $ 175 million.
Liberty has contacted NBC with the same proposal.