×
You will be redirected back to your article in seconds

TW cashes in with Southern

$213 mil deal paves way for transformation

Time Warner Corp. closed a deal on Thursday to pay $213 million in cash to acquire Southern Satellite Systems Inc. from Liberty Media Group, further paving the way for TBS Superstation’s imminent conversion from a superstation to a free-market basic cable service.

Southern Satellite provides satellite uplink and distribution services for TBS. Time Warner had previously indicated that it planned to exercise its purchase option for the company (Daily Variety, Sept. 17).

In a statement released Thursday, Time Warner stressed that it had held out the option of using common stock to acquire Southern Satellite but decided instead to use cash due to the “strong overall financial performance of its businesses and its belief that its stock remains undervalued” in spite of price appreciation this year.

TBS is slated to switch over from its superstation status — dating back to its days as Atlanta independent station WTBS — to a conventional cable service on Dec. 31, enabling the network to extract carriage fees from operators for the first time. Turner Broadcasting has already made several carriage deals with MSOs covering the TBS relaunch.

More Biz

  • Frank Cicha

    Listen: Why Fox Television Stations Embraced Trial and Error in Daytime

    Frank Cicha, head of programming for Fox Television Stations, saw the future coming nearly a decade ago when Fox’s TV station group committed many millions to land syndication rights to “The Big Bang Theory” back in 2010. Even then, it was clear that big hits on the scale of “Big Bang” were going to be [...]

  • Jussie Smollett

    Jussie Smollet Files Malicious Prosecution Counterclaim Against City of Chicago

    Jussie Smollett has filed a counterclaim against the city of Chicago, several Chicago Police Department officers, and brothers Abimbola Osundairo and Olabinjo Osundairo claiming that he was the victim of a malicious prosecution that caused him “humiliation, mental anguish and extreme emotional distress.” The filing document, obtained by Variety, alleges that the Chicago P.D. “obtained false and [...]

  • Anna-Kendrick-Frito-Lay-ad

    Christmas Crunch: Frito-Lay Bets on Anna Kendrick to Catch Holiday Snackers

    Anna Kendrick’s newest role puts her through what may be some of the most delicious torture of her career. Kendrick, known for films like “Up In The Air” and “Pitch Perfect,” recently found herself on the set of a three-day shoot surrounded by bowls, bowls and bowls of chips, popcorn and other salty snacks that [...]

  • CJ-CGV Cinemas

    CJ CGV Sells $286 Million Stake in Asian Cinema Businesses

    CJ CGV, the Korean movie theaters giant, is to raise $286 million from the sale of a slice of its Indonesian, Vietnamese and Chinese businesses. The company, which has its own stock market listing and is affiliated to the CJ Group, which includes CJ E&M and CJ Entertainment, said this week that it had sold [...]

  • Alibaba offices

    Hong Kong Share Sale Brings Alibaba an Easy $13 Billion

    Chinese e-commerce and entertainment giant Alibaba was easily able to sell all the shares it put up for sale in a secondary listing on the Hong Kong Stock Exchange. The company is selling 500 million new shares, which on Wednesday it announced would be priced at HK$176 apiece, or roughly US$180 per New York-traded ADR, [...]

  • Everybody Changes

    New Cadence Productions Acquires Domestic Rights to Panama's 'Everybody Changes'

    New Cadence Productions has acquired North American rights to the transgender family drama “Everybody Changes,” Panama’s official selection for the 92nd annual Academy Awards. The movie from writer-director Arturo Montenegro tells the true story of a Panamanian couple with three children who grapple with the father’s decision to come out as a transgender woman. “Everybody [...]

  • Assistant Attorney General, Antitrust Division nominee

    Justice Department Moves to End Paramount Antitrust Decrees

    The Department of Justice will seek to end the Paramount consent decrees, the landmark agreements that have barred studios from owning theaters for the last 70 years. Makan Delrahim, the head of the department’s antitrust division, made the announcement Monday in a speech to the American Bar Association fall forum on antitrust. He argued that [...]

More From Our Brands

Access exclusive content