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Deal will Improve Content Offering for UK Viewers Across Channel 5 and
Viacom Networks
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Combination with UK's Largest Privately Owned Public Service
Broadcaster to Enhance Distribution Opportunities for Viacom Content
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Acquisition Builds on Viacom's Long Track Record of Successful
Investment in the UK
LONDON & NEW YORK--(BUSINESS WIRE)--
Viacom Inc. (Nasdaq: VIAB, VIA) and Northern & Shell Media Group today
announced a definitive agreement for the acquisition of Channel 5Broadcasting Limited by Viacom International Media Networks (VIMN) for
£450 million (approximately $757 million).
The transaction brings Viacom one of British television's biggest
brands, and the only commercial public service broadcaster to
consistently grow viewership share in recent years. Channel 5's diverse
programming slate is viewed by more than 80% of the UK population each
month, benefits from the programming grid prominence associated with its
public service broadcaster status, and will complement Viacom's popular
pay TV networks, which connect with focused and valuable audiences.
"The acquisition of Channel 5 accelerates Viacom's strategy in the UK,
one of the world's most important and valuable media markets," said
Viacom President and CEO Philippe Dauman. "Channel 5's momentum is
indisputable, with impactful programming, increasing popularity and a
growing digital platform. Channel 5's management and employees have done
an outstanding job building their brand and we are pleased to welcome
them to our team. Viacom's global resources, technology and expertise
will help Channel 5 develop even more compelling programming and provide
content to consumers in exciting new ways. In addition, we will
introduce our popular content to new UK audiences and create a
comprehensive offering for our commercial partners on-air and on-line.
"This deal will dramatically increase Viacom's investment in content
produced in the UK, which has a widely admired public service
broadcasting culture and a globally influential production sector. We
look forward to partnering with local producers to introduce more
UK-created content to global audiences, and will continue to explore
opportunities in the UK, both in the free-to-air and pay television
markets."
Paul Dunthorne, Chief Operating Officer of Channel 5, said, "Since
Northern & Shell's acquisition of Channel 5 in 2010, the financial and
operating performance of the business has been transformed with improved
audiences and content offering. The combination of Channel 5 with
Viacom's global resources, technology and expertise adds further to the
momentum of the business and offers numerous exciting opportunities for
the channel's future."
The acquisition of Channel 5 builds on Viacom's long and successful
track record of investment in the UK. The company launched MTV in the
market in 1987, followed by Nickelodeon in 1993 and Comedy Central in
1995, growing to more than 20 branded TV networks currently on air,
including BET, VIVA and VH1. Viacom's continued growth resulted in it
being the most successful international supplier of pay TV channels to
the UK market in 2013. MTV enjoyed its highest ratings in eight years in
2013, while Nickelodeon and Comedy Central were also among the top
networks for their target demographics.
Under the terms of the agreement, Viacom will acquire all brands and
assets of Channel 5 Limited, including:
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Channel 5 launched as the UK's fifth public service broadcaster
in March 1997. Over 42 million UK viewers watch Channel 5 in any given
month tuning in to programming as diverse as The Gadget Show, Big
Brother, Home and Away, Neighbours, Under the Dome, Ice Road Truckers,
the CSI franchise, 5 News and the award winning children's strand,
Milkshake!
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5* launched as Five Life in October 2006, becoming FIVER in
April 2008 and 5* in March 2011. The channel attracts a growing
audience of younger viewers with a targeted mix of films, and acquired
and original programming.
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5USA launched in October 2006 and is the 11th highest rating
multichannel in the UK during prime time. The network showcases
American programming including CSI, CSI New York, CSI Miami, Person of
Interest, NCIS, The Mentalist and films.
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Milkshake! is one of the commercial brand leaders for
pre-school children's programming in the UK, broadcasting a morning
block throughout the week that features many of the world's favorite
pre-school characters, including Peppa Pig, Bert and Ernie, Noddy and
others. The Milkshake! website is a popular destination for kids, and
the brand has a strong track record of producing live children's
entertainment events in the UK.
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Demand 5 is Channel 5's video-on-demand service, which
is offered on more viewing platforms than any other commercial
broadcaster in the UK, and delivered over 23 million views in January
2014.
The purchase price of the acquisition will be financed by Viacom's
existing cash balances and the transaction is expected to be accretive
immediately after closing. The transaction is subject to customary
regulatory approvals.
About Viacom International Media Networks
Viacom International Media Networks (VIMN), a unit of Viacom Inc.
(NASDAQ: VIA, VIAB), is comprised of many of the world's most popular
multimedia entertainment brands, including MTV, Nickelodeon, Comedy
Central, BET, Paramount Channel, VH1, VIVA, COLORS, Game One and Tr3s:
MTV, Música y Más. Viacom brands are seen globally in more than 600
million households in 170 territories and 37 languages via more than 200
locally programmed and operated TV channels and more than 550 digital
media and mobile TV properties. For more information about Viacom and
its businesses, visit www.viacom.com.
Keep up with Viacom news by following Viacom's blog at blog.viacom.com
and Twitter feed at www.twitter.com/Viacom.
About Channel 5
Channel 5 launched as Britain's fifth public service broadcaster in
March 1997 and was bought by Northern & Shell in July 2010. It currently
attracts well over 42 million viewers a month. It delivers programmes
that combine creative flair and popular appeal, and continues to bring
viewers a mix of smart new shows that sit alongside popular long running
series such as Ben Fogle's Animal Clinic, Killers Behind Bars, and The
Hotel Inspector . Big Brother and Celebrity Big Brother are well
established in the schedule with entertainment at their core. They sit
alongside ratings stalwarts like Eddie Stobart: Trucks and Trailers and
The Hotel Inspector. Channel 5 acquires the best of international drama
including Wentworth Prison, Under the Dome, Person of Interest, and The
Mentalist, as well as Aussie soaps Neighbours and Home and Away. For
sports fans, Channel 5 is the free-to-air home of all England Cricket
domestic summer Internationals and regular title boxing. Channel 5 News
delivers the news and debates the main topics of the day. The channel is
committed to children's programing with their award winning strand
Milkshake!. Sister channels 5* and 5USA compliment Channel 5 with a mix
of must see entertainment and US Drama including American Idol and the
CSI franchise. Demand 5 is a free service to catch up with the latest
programmes on Channel 5, 5USA and 5* available to watch whenever you
want together with an archive of classic shows. It is available across
platforms and devices including Virgin Media, BT Vision, Xbox1, iOS, You
View, Sky On Demand, Android, Freesat, PS4, and Roku. For all the latest
about Channel 5, follow us on twitter.com @channel5press and
@channel5_tv.
About Northern & Shell
Northern & Shell Media Group is present in several major areas of
consumer publishing and has a diverse portfolio of interests across
print, television, new media, distribution, investment and property. The
portfolio includes four UK national newspaper titles - the Daily
Express, Sunday Express, Daily Star and Daily Star Sunday, celebrity
magazines OK!, new! and Star, and the Health Lottery. It is also a 50%
joint venture partner in the Irish Daily Star.
About Viacom
Viacom is home to premier global media brands that create compelling
television programs, motion pictures, short-form video, apps, games,
consumer products, social media and other entertainment content for
audiences in more than 160 countries and territories. Viacom's media
networks, including MTV, VH1, CMT, Logo, BET, CENTRIC, Nickelodeon, Nick
Jr., TeenNick, Nicktoons, Nick at Nite, Comedy Central, TV Land, SPIKE,
Tr3s, Paramount Channel and VIVA, reach approximately 700 million
households worldwide. Paramount Pictures, America's oldest film studio,
is a major global producer and distributor of filmed entertainment.
For more information about Viacom and its businesses, visit www.viacom.com.
Keep up with Viacom news by following Viacom's blog at blog.viacom.com
and Twitter feed at www.twitter.com/Viacom.
Viacom Cautionary Statement Concerning
Forward-Looking Statements
This news release contains both historical and forward-looking
statements. All statements that are not statements of historical
fact are, or may be deemed to be, forward-looking statements.
Forward-looking statements reflect our current expectations concerning
future results, objectives, plans and goals, and involve known and
unknown risks, uncertainties and other factors that are difficult to
predict and which may cause future results, performance or achievements
to differ from forecasts. These risks, uncertainties and other factors
include, among others: the public acceptance of Channel 5's programming
in the United Kingdom (UK); technological developments and their effect
on the UK markets and on consumer behavior; competition for audiences
and distribution; the impact of piracy; economic conditions in the UK
generally, and in advertising and retail markets in particular; changes
in applicable UK laws and regulations, particularly regarding public
broadcasting, foreign investment and the nature and amount of
advertising that may be included in programming; and other economic,
business, competitive and/or regulatory factors affecting businesses in
the UK generally. The forward-looking statements included in this
document are made only as of the date of this document, and we do not
have any obligation to publicly update any forward-looking statements to
reflect subsequent events or circumstances. If applicable,
reconciliations for any non-GAAP financial information contained in this
news release are included in this news release or available on our
website at http://www.viacom.com.
Viacom
Jeremy Zweig, +1
212-846-7503
jeremy@viacom.com
or
Viacom
International Media Networks
Matt Baker, +44 203 580 2101
matt.baker@vimn.com
or
Northern
& Shell /Channel 5
Mimi Turner, +44 (0) 20 8612 7030
Source: Viacom Inc.
News Provided by Acquire Media