Who exactly is going to buy Starz? This question has been hovering over the premium cable and satellite TV network (and fledgling streamer) for a while now. It’s been crystal clear that Lionsgate has been taking the time to ‘buyer-shop’ among interested parties, but the deal is starting to drag a little. Last week we saw them finally make an announcement about the future of Starz. Blake & Wang entertainment lawyer, Brandon Blake, sheds some light on the situation.
Closing by Next Spring
We still don’t have a clear buyer announcement, of course. However, we’ve been promised one by the end of summer, with the deal closing by spring. In fact, they teased that it could be as early as the end of fiscal quarter four. More M&A developments were also hinted at, for both Starz and Lionsgate overall, once the separation is finalized.
For people keen to see who will eventually take home the prize, it’s still a frustratingly vague announcement. Many names have been thrown into the hat in the last year. Roku has shown clear interest, as has Canal+ (part of the Vivendi conglomerate). Apollo Global Management has been keen on acquiring a minority interest, while DirecTV was also tied to the deal by rumor.
Lionsgate Acquisition
Lionsgate itself took Starz over for a relatively-small $4.4B in 2016. It’s shown solid growth in the streaming arena, but failed to enhance its parent company’s bottom line by much. Hence their urge to spin it off, a move that could unlock greater value for both entities if done well.
Starz has been responsible for the bulk of recent subscription additions for Lionsgate, comprising 47% of the gain last year that has left them at 35.8M subscribers. StarzPlay International consortium has seen particularly good growth.
So far, we have a more concrete timeline and the knowledge that Lionsgate will retain a minority stake of their own. Still frustratingly vague, but definite progress on the deal. We’ll keep you informed as other updates arrive.
Film and Television 