Lionsgate to sell Starz, streaming service’s Splitting Studio – the Hollywood Reporter



Lionsgate is officially exploring its options for Starz, considering a separation of the pay-TV and streaming business and its studio operations.

According to a regulatory filing Thursday related to its quarterly earnings, Lionsgate’s board of directors made the decision this week.

“On November 2, 2021, the board of directors of the company authorized the company’s management team to explore potential alternatives in the capital markets for its media network business (STARZ), including, but without be limited to this, a total or partial split, a split, the issuance of a follow-up stock or other transactions â€, indicates the file.

“As we continue to realize substantial synergies by bringing Lionsgate and Starz together, we also see the opportunity to potentially unlock significant shareholder value in a scenario where investors have the opportunity to value our studio and Starz assets separately,” said Michael Burns, vice president of Lionsgate. on the company’s earnings call. “The recent multiples of transactions in the media space give us the assurance that it is prudent to explore other avenues. In addition, we believe that a number of structures that we are considering would allow Lionsgate and Starz to preserve many of the operational advantages that we are currently achieving within a single corporate structure.

“Even though we don’t normally talk about the value of stocks, it’s pretty clear to us that we don’t get the value of some of our coins,†he added, noting in particular his international activities and investments.

Starz is a pay TV channel similar to HBO and Showtime, and also offers a streaming service. Its programming includes Power franchise, Blind spot, and Upper town.

Lionsgate acquired Starz in 2016 for $ 4.4 billion.

The record suggests the company is in the early stages of the process, and Burns said “the timing would depend on which route we choose, that’s an open question.”


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