Unitedglobalcom (NASDAQ:UCOMA)
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UGC Acquires Channel Operator and Distributor Zone Vision
DENVER, Jan. 17 /PRNewswire-FirstCall/ -- UnitedGlobalCom, Inc. ("UGC")
(NASDAQ:UCOMA) today announced that its European content subsidiary,
chellomedia, has acquired an 87.5% interest in Zone Vision Networks Ltd. ("Zone
Vision" or the "Company) from its current shareholders, including Advent
International Corporation. Zone Vision is an innovative and fast growing
programming company focusing on the ownership, management and distribution of
pay television channels. Zone Vision owns and operates three thematic
channels: Reality TV, Europa Europa and Romantica, which are broadcast in over
125 countries in 18 languages, with over 135 million paying subscribers. In
addition, Zone Vision's channel representation business currently represents
over 30 international channels from companies such as Discovery, Viacom,
Turner, Hallmark and Eurosport, managing over 60 million subscribers.
Total consideration for the transaction amounted to $50 million in cash and $15
million in UGC stock. The stock is subject to a five-year vesting period. As
part of the transaction chellomedia will also contribute to Zone Vision the 49%
shareholding it already holds in Reality TV Ltd. and chellomedia's Club channel
business. Zone Vision was represented by CEA International.
Mike Fries, President and Chief Executive Officer of UGC, said, "This
acquisition represents a unique opportunity to strengthen our programming
activities in Europe. As we expand our rollout of digital video and broadband
Internet services, the need to develop and control attractive content becomes
increasingly more important. Chris Wronski and his team are creative,
entrepreneurial and exactly the sort of talented managers of content and media
services we need in our business."
"Some time ago, we began a search to identify a partner that could help us move
our business to the next level," commented Chris Wronski, President and
Chairman, Zone Vision. "With the success of our Reality TV channels around the
world, as well as the growth we've experienced with channels like Romantica and
Europa Europa, we have sought to develop more targeted channels for the
international digital cable and satellite market. chellomedia has been a
fantastic partner throughout Europe, so it became apparent that they were the
most suitable to provide us with the resources to achieve our goals. We are
delighted to join forces with UGC and look forward to a prosperous future as
Zone Vision Networks."
About Zone Vision
Since it was first launched in 1991, by Chris Wronski, Zone Vision has grown to
become a leading international broadcaster and distributor of thematic
television channels. The Company has 18 offices and studios throughout Europe,
the United States, Asia and Latin America and employs over 190 local staff.
In addition to its channels and representation businesses, Zone Vision's
programme distribution arm, Zone Licensing, continues to acquire formats,
series and specials from leading producers around the world.
About UnitedGlobalCom
UGC is a leading international provider of video, voice, and broadband Internet
services with operations in 15 countries, including 12 countries in Europe.
Based on the Company's operating statistics at September 30, 2004, UGC's
networks reached approximately 15.5 million homes passed and served over 11.1
million RGUs, including approximately 9.1 million video subscribers, 761,000
telephone subscribers and 1.3 million broadband Internet subscribers.
Forward-Looking Statements: Except for historical information contained herein,
this press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward looking
statements involve certain risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by these
statements, including Zone Vision's ability to continue financial and
operational growth at historic levels, and the Company's ability to achieve
expected operational efficiencies and economies of scale. These
forward-looking statements speak only as of the date of this release. The
Company expressly disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statement contained herein to
reflect any change in the Company's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based.
Please visit http://www.unitedglobal.com/ for further information or contact:
DATASOURCE: UnitedGlobalCom, Inc.
CONTACT: Richard S.L. Abbott, Investor Relations of UGC,
+1-303-220-6682, , or Bert Holtkamp, Corporate
Communications of UGC Europe, + 31 (0) 20 778 9447,
, or Claire Appleby, Investor Relations of UGC
Europe, +44 20 7 838 2004,
Web site: http://www.unitedglobal.com/