Lionsgate Takes Starz Stake

SANTA MONICA: Lionsgate has acquired a stake in Starz, with John Malone set to join the independent studio's board of directors upon completion of the transaction.

The stock-exchange transaction will see Lionsgate exchanging newly issued shares representing approximately 3.43 percent of its outstanding common stock for about 4.51 percent of Starz common stock and 14.5 percent of the total voting power of Starz common stock. Starz's largest voting shareholder will continue to be Malone, with a 6.1 percent equity interest and approximately 32 percent of the total voting power of Starz.

"Lionsgate has emerged as a leader in developing global content, and this transaction creates the potential for a number of strategic opportunities around the world with them," said Malone. "I'm delighted to add my voice to the Board of Directors of one of the most exciting content companies in the industry."

"We look forward to welcoming John to our Board of Directors and working together to create additional shareholder value," said Lionsgate's chairman, Mark H. Rachesky. "Now that Lionsgate has grown into an industry leader, we are excited to take the company to the next level as we continue to exploit the robust global demand for content."

"John has been a pioneer in content distribution to the next-generation consumer, and we're delighted to add an investor of his caliber, experience and vision to our Board of Directors," said Lionsgate CEO Jon Feltheimer and Vice Chairman Michael Burns. "We see tremendous value in Starz as well as the potential to explore a broad range of strategic initiatives in the future."

Chris Albrecht, the CEO of Starz, added, "Lionsgate has been a great partner for us on projects in the past. We have tremendous respect for the business they have built and their leadership position in the entertainment industry. We're pleased that they will be joining Dr. Malone as shareholders who support our vision."