Lionsgate studio buys premium channel Starz for $4.4 billion
After months of on-again, off-again talks, movie studio Lionsgate has clinched a deal to buy premium cable network Starz for $4.4 billion.
Lionsgate, the Santa Monica entertainment company behind the “Hunger Games” movies and the Netflix TV series “Orange Is the New Black,” said it would pay a significant premium to buy the stand-alone Starz to bulk up its entertainment portfolio.
The consolidation is part of cable television mogul John Malone’s plan to sweep together small entertainment companies so that they can better withstand the forces shaking the media industry due to dramatic changes in consumer behavior.
A merger could better position the companies to compete amid broader consolidation in the entertainment industry, especially given the unpredictable nature of the movie business.