Lionsgate Says Starz Should Be Spun Off By the End of Summer
Roku, Apollo Global, Canal Plus and DirecTV are all bidding for a piece
Lionsgate confirmed Thursday that it is indeed looking to spin off Starz and said it should have a deal in place by the end of the summer, with closure occurring by the end of 2022.
“We are engaged in a robust and productive process with our bankers and a number of potential strategic and financial partners," Lionsgate CEO Jon Feltheimer told equity analysts during Lionsgate's fiscal Q4 earnings call.
It was reported earlier this month that Roku and private equity firm Apollo Global Management are jointly bidding for a piece of the premium programmer. Vivendi’s Canal Plus and DirecTV are also said to be interested.
“Obviously, anything can change. We’re in an incredibly disruptive environment right now. But based on the conversations we’re having, we think that’s the appropriate time frame,” Feltheimer added.
Lionsgate paid $4.4 billion to buy Starz in 2016, but right now is underwater with the asset and is looking to extract more value from it.
Streaming subscribers served by Starz across global regions were up 47% year over year to 24.5 million. Factoring in Starz Arabia, Starz now has a global OTT scale of nearly 36 million customers.
“Although streaming is not an end in itself, it is a very efficient way to bring content to our customers worldwide,” Feltheimer said. ▪️
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Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!