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AMC Networks on Monday said it has offered to purchase all of the outstanding shares of RLJ Entertainment for $4.25 per share, putting the company value at about $60 million.

Digital company RLJ Entertainment operates its branded OTT channels, Acorn TV and UMC (Urban Movie Channel).  

If the deal happens, RLJ Entertainment would be a privately owned subsidiary of AMC Networks, with founder Robert Johnson retaining a minority stake.

AMC Networks said the offer price represents a 10 percent premium to RLJ’s closing stock price on Friday, and a 126 percent premium to the closing price on the day before the announcement of AMC’s initial investment.  

The two formed a strategic partnership in October of 2016, which involved AMC Networks providing a $65 million initial investment in RLJ through loans (the loans have since been increased to a total of $78 million). Through the investment AMC received warrants that could be converted to give AMC Network at least 50.1 percent of the outstanding RLJ common stock. AMC currently owns about 25 percent of RLJ, while Johnson owns 47 percent.

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