SANTA MONICA, CA and ENGLEWOOD, CO – Lionsgate is buying the Starz cable network for $4.4B in a cash and stock deal that the companies say will establish “a global content powerhouse positioned to capitalize on growth opportunities worldwide”.
Thursday’s announcement says that transaction, expected to close by year-end, significantly increases the combined company's content creation capabilities, enhances its leadership in premium scripted programming and scales its global distribution footprint across mobile, broadband, cable and satellite platforms. It also paves the way for a range of new content partnerships and accelerates the growth of Lionsgate and Starz's own OTT services.
To illustrate the scale of the transaction, the combined company will encompass a 16,000-title film and television library; the largest independent television business in the world, including 87 original series on 42 U.S. networks; a feature film business that has generated over $7 billion at the global box office over the past four years; operation of or investment in 30 channel platforms around the world, including the flagship Starz platform reaching 24 million U.S. subscribers, the Starz Encore network with over 32 million subscribers and five OTT services; and a growing presence in location-based entertainment and video games driven by the company's portfolio of brands and franchises.
"This transaction unites two companies with strong brands, complementary assets and leading positions within our industry," said Lionsgate CEO Jon Feltheimer and vice-chairman Michael Burns, in a joint statement. "We expect the acquisition to be highly accretive, generate significant synergies and create a whole that is greater than the sum of its parts. Chris Albrecht and his team have built a world-class platform and programming leader, and we're proud to marshal our resources in a deal that accelerates our growth and diversification, generates exciting new strategic content opportunities and creates significant value for our shareholders."
"Jon, Michael and the rest of the Lionsgate team have built the first major new Hollywood studio in decades, and we're thrilled to join with them in a transaction that multiplies the strengths of our respective businesses," added Starz CEO Chris Albrecht. "Our similar entrepreneurial cultures and shared vision of the future will make this alliance an incredible fit that creates tremendous value for our shareholders, great content for our audiences and limitless opportunities for our newly-combined company. I am very appreciative of the work, passion and dedication of both of our companies' employees and more enthusiastic than ever about the future of our business."
The agreement has been approved by the boards of directors of Lionsgate and Starz and will be submitted to their respective shareholders for approval as well as to regulatory authorities.
