Cablevision said it would pay a total of $496 million through a tax-free exchange of approximately 12.7 million shares of GE <GE.N> common stock held by Cablevision's Rainbow Media unit, with a cash adjustment at closing based on the value of the GE shares in relation to the total purchase price.
NEW YORK (Reuters) - Cablevision Systems Corp <CVC.N> said on Wednesday it would acquire Sundance Channel from General Electric Co's NBC Universal, CBS Corp's <CBS.N> Showtime Networks and entities controlled by Robert Redford, the actor and director.
Cablevision said it would pay a total of $496 million through a tax-free exchange of approximately 12.7 million shares of GE <GE.N> common stock held by Cablevision's Rainbow Media unit, with a cash adjustment at closing based on the value of the GE shares in relation to the total purchase price.
GE would receive all of Rainbow's GE shares, while CBS and Redford would get cash, Cablevision said.
Sundance Channel would be 100 percent owned by Cablevision's Rainbow Media unit, which also houses cable channels AMC, IFC and WE.
!ADVERTISEMENT!Sundance was launched in 1996 by Redford and currently reaches nearly 30 million subscribers with a range of original programming, including documentaries. Cablevision said Redford would remain involved with the channel.
Cablevision, the Bethpage, New York cable operator controlled by the Dolan family, last week made a $650 million bid to buy Tribune Co's Newsday newspaper, according to a source familiar with the talks.
The company is seeking growth from areas beyond its maturing cable operations, including the business on Long Island, New York, which is getting stiffer competition from Verizon Communications Inc <VZ.N>.
(Click on http://blogs.reuters.com/category/themes/mediafile/ to see Reuters MediaFile blog)
(Reporting by Yinka Adegoke; editing by Jeffrey Benkoe)
