Starz, Lions Gate gain after report of advanced acquisition talks
Starz and Lions Gate Entertainment Corp. both gained in late trading Wednesday after Bloomberg News reported that the two entertainment companies were in advanced talks to merge. Lions Gate was close to acquiring Starz for more than $30 a share and a deal could be announced in the next few days, Bloomberg reported. Rumors of a deal between the two media companies has circulated for more than a year, after Starz's largest investor, Liberty Media Corp. Chairman John Malone, swapped out a stake in Starz for one in Lions Gate and took a seat on the company's board. Lions Gate produces film and television content, while Starz owns a premium cable network. Starz shares gained more than 6% in late trading Wednesday to top $30 a share after closing at $28.25; Lions Gate stock added 5% to $22.
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