AMC Networks, the cable network company behind The Walking Dead and Mad Men, said Thursday it will pay $200 million to acquire a 49.9% stake in cable channel BBC America and assume operation of the U.S. arm of the British Broadcasting Corporation. BBC Worldwide, the commercial arm of BBC, will retain a majority stake of 50.1% in BBC America.
In their joint venture, AMC will manage advertising sales for BBC America, which airs several popular series produced outside the U.S., including Doctor Who, Luther, Top Gear and Orphan Black. AMC will also negotiate affiliate fees that BBC America receives from distributors and represent BBC World News in U.S. distribution and domestic advertising sales.
AMC and BBC America, which reaches about 80 million homes in the U.S., have worked together in the past, jointly producing several series, including drama Top of the Lake and The Honourable Woman. While BBC America will continue to be operated as an independent network, it will partner with AMC to “pursue a number of content investment opportunities,” the companies said.
With production costs rising, pay-TV distributors have been seeking mergers to enhance their leverage against cable networks in negotiating content fees and gaining more favorable digital streaming rights. Analysts anticipate that networks will similarly respond by consolidating and buying competitors or seeking close partnerships. Shares of AMC fell 29 cents to close at $58.44 before the announcement. They were unchanged in extended trading.