Cablevision Systems Corp announced on Wednesday its plans to purchase Sundance Channel for a total of $496 million.

Sundance Channel is currently owned by General Electric Co's NBC Universal, CBS Corp's Showtime Networks and entities controlled by Robert Redford.

It was launched in 1997 by the above-mentioned actor and director and now reaches about 30 million homes. Sundance Channel is airing independent feature films, world cinema, documentaries, short films, and original programs. All is shown uncut and without commercials.

Cablevision Systems Corp will acquire the channel through a tax-free exchange of approximately 12.7 million shares of GE common stock from Cablevision's Rainbow Media unit with a cash adjustment at closing based on the value of the GE shares in relation to the total purchase price.

The deal is: GE gets all the shares of Rainbow's GE, CBS and Redford get cash, while Cablevision's Rainbow Media unit gets Sundance Channel.

Rainbow Media also houses AMC, IFC and WE cable channels.

In a statement, Cablevision said Redford will continue his association with Sundance Channel - available on bonus cable and satellite tiers – although the nature of that collaboration is unknown.

The purchase would make Rainbow stronger by enriching its movie offerings as well as its demographic reach. Meanwhile, it also makes the company a more tempting potential takeover objective.