Al Jazeera Media Network has announced that it has acquired U.S. cable channel Current TV, according to aljazeera.com.

The Qatar-based network said on Thursday, Jan 3, that with the acquisition it plans to create Al Jazeera America, a U.S.-based news channel. Al Jazeera’s coverage will soon be available in more than 40 million U.S. households, up from 4.7 million prior to the deal.

Terms were undisclosed, but analysts told Reuters the deal could be worth an estimated $500 million. The new channel will be headquartered in New York City.

In addition to the existing Al Jazeera news bureaus in New York, Washington, DC, Los Angeles, Miami and Chicago, Al Jazeera will open additional bureaus in key locations across the United States. It will also double its U.S.-based staff to more than 300 employees.

The new channel is scheduled to begin broadcasting in 2013.

Current Television was set up seven years ago by former U.S. vice president Al Gore. Although Current TV has been struggling for ratings, it nonetheless says it reaches 60 million American households.