M&A: Lionsgate to buy Starz for $ 4.4 billion

9 years ago - Published in Finance, Fundamental Analysis

Lions Gate Entertainment, the production company, which produced among others the movies "The Hunger Games", announced to acquire media company Starz for $ 4.4 billion, cash and stock, to detect the television network. The agreement brings together the two cable companies, linked to magnate John Malone. The deal unites the biggest mini-major studio in the country with the second biggest cable network on television,

Lions Gate will pay $ 32.70 per share for Starz, representing a premium of nearly 16 percent to Starz's closing price on Wednesday. Lions Gate and Malone own shares at Starz, while Malone is also a Lions Gate shareholders who sits on its board.

PJT Partners was the lead financial adviser to Lions Gate, while J.P. Morgan, Bank of America / Merrill Lynch, Deutsche Bank and Credit Suisse were its financial advisers.