Lionsgate To Buy Cable TV Operator Starz For $4.4B

SANTA MONICA (CBSLA.com/AP) — Film and TV studio Lionsgate is buying cable channel operator Starz in a deal worth $4.4 billion.

The Santa Monica-based film company behind "The Hunger Games" movies and the "Orange Is The New Black" TV series is expected to finalize the deal to acquire Englewood, Colorado-based Starz by the end of the year.

By scooping up the Starz cable channel, as well as Starz Encore and MoviePlex, Lionsgate hopes to tap its library of movies and TV shows and air them through Starz's channels.

"The transaction significantly increases the combined company's content-creation capabilities, enhances its leadership in premium scripted programming and scales its global distribution footprint across mobile, broadband, cable and satellite platforms," said a joint statement, adding that the deal "is expected to generate significant revenue and cost synergies."

Lionsgate said Thursday that it will pay holders of Starz Series A stock $18 in cash and 0.6784 of a Lionsgate share. Starz Series B stockholders will receive $7.26 in cash and 1.2642 of Lions Gate stock.

Lionsgate already owns stakes in the Epix and Pop channels, while Starz, besides its channels, also owns Anchor Bay Entertainment, which distributes movies on DVDs.

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