Sony Pictures Entertainment acquires AT&T stake in Game Show Network

Sony Pictures Entertainment (“SPE”) and AT&T Inc.* (NYSE:T) today announced that SPE has acquired AT&T’s minority stake in Game Show Network, LLC (“Game Show Network”). SPE now owns 100% of the multimedia entertainment company offering original and classic game programming to millions of subscribers through the U.S.-based cable network. It also offers online and mobile games to millions of users through GSN Games.  Following the transaction, the Game Show Network channel will continue to be carried on DIRECTV.

The sale is consistent with AT&T’s strategy to monetize non-strategic assets as it de-levers its balance sheet and begins to retire shares. Prior to the transaction, SPE owned a 58% stake in Game Show Network, and AT&T owned the remaining 42%.  In connection with the transaction, AT&T received approximately $500 million, including proceeds for its equity stake valued at $380 million (before transaction-related adjustments) and dividends of approximately $130 million.  Game Show Network will continue to be managed by Sony Pictures Television (“SPT”) with Mark Feldman continuing as President and CEO of the multimedia outlet.  The acquisition will bolster SPT’s already robust catalogue of game shows and first-run series, such as Jeopardy! and Wheel of Fortune, solidifying its position as the leader in all facets of the U.S. TV game show business.