AMC NETWORKS INC Common Stock (NASDAQ: AMCX) stock soared 21.23% on September 16th, 2020 but slightly corrected over 0.4% on September 17th, 2020 (as of 12:11 pm GMT-4; Source: Google finance) after the company plans a major buyback through an a “modified Dutch auction” tender offer to purchase up to $250 million in value of its outstanding Class A common stock, par value $0.01 per share, at a price per Class A Share of not less than $22.50 and not greater than $26.50. The offer was planned to start on September 16, 2020, and is intended to expire at 12:00 midnight, New York City time, at the end of Wednesday, October 14, 2020, unless the offer is extended.
Meanwhile, this tender offer allows the shareholders to indicate how much stock and at what price within the specified offer range they wish to tender their stock. Based on the number of Class A Shares tendered and the prices specified by the tendering stockholders, AMC Networks will determine the lowest price per Class A Share within the specified range that will enable it to purchase $250 million of Class A Shares at such price, or such lesser number of Class A Shares that are tendered and not withdrawn (the “Final Purchase Price”), subject to the terms of the tender offer. If, based on the Final Purchase Price, over $250 million in value of Class A Shares (or such greater number of Class A Shares as AMC Networks may choose to purchase without amending or extending the tender offer) are properly tendered and not properly withdrawn, AMC will purchase shares tendered at or below the Final Purchase Price on a pro rata basis, which is subject to certain “odd lot” priority and conditional tender provisions.
On the other hand, the Company also announced that its Executive Chairman, Charles F. Dolan, is stepping down from that position to become Chairman Emeritus and that James L. Dolan has been elected as the Non-Executive Chairman of the Company’s Board of Directors. Further, the company’s Chief Financial Officer Sean S. Sullivan is leaving to take a senior position at another company. Mr. Sullivan will be with the company through mid-October and the company will appoint an interim Chief Financial Officer or a successor prior to his departure.
Additionally, for the second quarter of 2020, the company’s net revenues fell 16.3%, to $646 million over the second quarter of 2019. The decline in net revenues is due to decrease of 18.0% at National Networks and a decrease of 10.3% at International and Other.