Lions Gate Entertainment is weighing whether to spin off Starz, the studio’s fast-expanding premium cable channel, The Wall Street Journal reported citing people familiar with the matter
The company is looking to reduce its hefty debt load and allow shareholders to invest directly in either of the businesses, the people said.
The movie and television production company has been in discussions to separate the two entities through a variety of means, including a sale, spinoff or special-purpose acquisition vehicle, the people said. No final decisions have been made, and the discussions remain fluid, said people familiar with the deliberations.
Starz is best known for its original series, including “Power” and “Outlander,” both of which have strong followings. But this summer, AT&T’s DirecTV unit cut the amount it pays Lions Gate to carry Starz and Encore during a renegotiation, and Comcast is considering dropping both channels from its premium channel packages when the deal expires at the end of the year, people familiar with the matter said.
The potential loss of the estimated US$225 million contract with Comcast would be a severe blow to Lions Gate, which took on new debt earlier this year and had roughly US$200 million in cash as of June 30.
Full Content: The Wall Street Journal
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI