Aljazeera Acquires US Current TV Close to $500 million, will Launch Aljazeera America
Aljazeera also plans to open offices in major locations across the US.
Current TV was founded by former US vice president AlGore and serves around 60 million house hold through cable system or satellite TV.
Al Jazeera did not disclose the purchase price, but people with direct knowledge of the deal told New York Times it at around $500 million, indicating a $100 million payout for Mr. Gore, who owned 20 percent of Current
“We are proud and pleased that Al Jazeera, the award-winning international news organization, has bought Current TV,” Gore and Joel Hyatt, the station’s co-founder and CEO, said in a statement released Wednesday.
With a handful of exceptions (including New York City and Washington), American cable and satellite distributors have mostly refused to carry Al Jazeera English since its inception in 2006.
So Aljazeera tried to boost its presence and access in the US market with this acquistion. However signs of trouble started to emerge as Time Warner Cable immediately moved to drop Current following the takeover announcement.
“Our agreement with Current has been terminated and we will no longer be carrying the service,” the cable provider said in a statement.