Lionsgate has sealed an agreement to acquire premium cabler Starz in a $4.4 billion cash and stock deal.
The deal had been expected. The two companies have flirted with a merger on and off for more than a year. The two were united in a corporate marriage early last year by investor John Malone, the majority shareholder in Starz who also acquired a stake in Lionsgate last year. Malone’s stake in Lionsgate will grow considerably through the Starz acquisition pact as he will receive voting and non-voting Lionsgate shares in exchange for his preferred Starz Class B stock.
Lionsgate said the deal in total values Starz shares at $32.73, an 18% premium over the 20-day average trading price for Starz as of June 28. Starz shares have been on the rise for the past few months as acquisition rumors heated up.
“This transaction unites two companies with strong brands, complementary assets and leading positions within our industry,” said...
The deal had been expected. The two companies have flirted with a merger on and off for more than a year. The two were united in a corporate marriage early last year by investor John Malone, the majority shareholder in Starz who also acquired a stake in Lionsgate last year. Malone’s stake in Lionsgate will grow considerably through the Starz acquisition pact as he will receive voting and non-voting Lionsgate shares in exchange for his preferred Starz Class B stock.
Lionsgate said the deal in total values Starz shares at $32.73, an 18% premium over the 20-day average trading price for Starz as of June 28. Starz shares have been on the rise for the past few months as acquisition rumors heated up.
“This transaction unites two companies with strong brands, complementary assets and leading positions within our industry,” said...
- 6/30/2016
- by Cynthia Littleton
- Variety - TV News
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