Image Sold in $100 Million Deal

Image Entertainment Inc. has been acquired by a new media and investment group in a deal worth $100 million. The deal expands Image’s overall business in producing and distributing home entertainment programming with the content creation and digital technology expertise of Q Black LLC. The merger agreement between Chatsworth-based Image and Nyx Acquisitions, a subsidiary of Q Black, gives Image stockholders $2.75 per share in cash. The deal is expected to close in early 2009. “(Image and Q Black) create a much larger and exciting organization, one very much focused on feature films and well prepared to take advantage of evolving distribution strategies,” Image President David Borshell said. This is the second time in the past year that Image has put itself up for sale. A merger agreement between Image and BTP Acquisition Co. LLC that would have kept Image as a publicly traded company fell through in February over financing issues. The Image board of directors unanimously approved the merger agreement and has recommended that Image stockholders vote in favor of the transaction. Q Black is a privately-held, San Francisco-based new media and global investment group with a library of original content that includes reality television series, documentaries, and concert footage. Shares of Image closed at $0.69.