Metro-Goldwyn-Mayer has sold most of its international television channels to Chellomedia, the international content division of Liberty Global, it was announced Wednesday.

MGM, which has been shopping the international channels since earlier this year, is keeping its network businesses in the U.S., UK, Germany and a joint venture in Brazil and Australia. The deal includes 13 channels, two joint ventures and the service which feeds the content.

Separately, Chellomedia also announced Wednesday from London that it has entered into an agreement with CBS Studios International to create CBS-branded channels within the Chellomedia channel division called Chello Zone, which has existing operations in 83 territories across Europe, the Middle East and Asia. The two companies have been partners in other CBS branded channels in the UK since 2009.

CBS will hold a 30 percent stake in the new venture, which will form a new board from both companies.

As part of the deal with MGM, Chellomedia will have the right to use the studio’s famous roaring lion brand on the channels; and has made a licensing deal which will give it continued access to the 4,000-plus titles in the MGM movie and TV library. The library includes not only MGM titles, but also those from United Artists, Orion and others acquired over the years. Those include Rain Man, When Harry Met Sally, Thelma and Louise and Silence of the Lambs.

Chellomedia will now own a group of channels that the former management of MGM spent nearly a decade assembling, including outlets in Spain, Turkey, Israel, Benelux, Poland, India and South East Asia.

Chellomedia has also acquired the 50 percent of MGM Latin America that it does not already own, after operating as a joint venture since 1998. Chellomedia also acquired the rest of another joint venture operated with MGM in Central Europe.

In a 2011 financial report, privately held MGM indicated the annual revenue from all of its international channel operations was about $150 million. That is believed to have produced about $20 million to $30 million cash flow, and about $20 million in deferred profit.

Many of the channels sell advertising as well as earning subscriber fees when carried on cable or satellite systems. Most are also available on pay-per-view or on demand.

In the announcement, Chellomedia alluded to its interest in the channels and content for use in the on demand world.

Continued here: