AMC Networks position
During the third quarter of 2014, Luxor Capital Group reduced its position in AMC Networks (AMCX). Per 13F filings for 3Q14, the fund currently owns 3,150,920 shares of AMCX. This is a decrease of 557,325 shares since the end of June.
Overview of AMC Networks
Founded in 1980, AMC Networks produces programming and movie content. The New York-based firm strives to deliver distinctive, compelling, and culturally relevant content that engages audiences across multiple platforms.
AMC Networks owns the cable channels AMC, IFC, WE tv, and SundanceTV. The firm also owns the distribution company IFC Films. Plus, AMC Networks operates BBC America through a joint venture with BBC Worldwide.
In November 2014, AMCX reported third-quarter revenues of $519 million, which was an increase of over 31% on a year-over-year basis. The revenues reported for 3Q13 were $395 million.
The net income for 3Q14 was $53 million, a 10% decrease from the net income of $58 million in 3Q13. The decrease in net income was mainly due to a significant increase in operating expenses and a litigation settlement gain of $133 million recorded in 3Q13.
Investment in BBC America
In October 2014, AMCX announced its acquisition of a 49.9% stake in BBC America for $200 million. BBC America airs popular shows like Doctor Who, Sherlock, Top Gear, and Planet Earth. The acquisition created a powerful collection of the most critically acclaimed networks. AMCX hoped that the acquisition would help it form a deeper connection with viewers, as BBC America is now available in over 80 million US households.
The CEO of AMCX said, “Our content rises to the top on many levels and is particularly well-suited to an era of on-demand viewing and expanding consumer choice.” BBC Worldwide gets to use AMCX’s advertising and programming expertise, while AMCX has operational control and runs BBC America.
Other 3Q14 positions for Luxor Capital
Luxor Capital’s new positions in 3Q14 included IAC/InterActiveCorp (IACI), Cheniere Energy Inc. (LNG), and Workday Inc. (WDAY). The fund sold its stakes in Melco Crown Entertainment (MPEL), Yahoo! Inc. (YHOO), and Apple Inc. (APPL). Luxor Capital increased its positions in 21st Century Fox (FOX), Searchlight Minerals (SRCH), and Conn’s Inc. (CONN), while it decreased its position in RCS Capital Corp. (RCAP).
The next part of this series will discuss Luxor Capital Group’s position in RCS Capital Corp.