Lionsgate Says Scope Of Starz Deal Could Grow As Partners Eye Studio Too; September Announcement On Track

deadline.com:

Lionsgate execs said the company is still on track to announce a deal for Starz next month and close as early as next spring, but talks have expanded to possibly include the studio as well.CEO John Feltheimer said Thursday that different types of bidders have emerged — a group of investors focused on the streaming platform, and others that understand the “immense value” of the studio and are eyeing that.

He urged Wall Street to look at Amazon’s $8.5 billion purchase of MGM as a benchmark, noting the high price tag, and that it left Lionsgate “the only real, actionable investment” around as a studio.“Our library is better than the MGM library.

Our library is newer, fresher than the MGM library,” he said.On timing, he and CFO James Barge — speaking on a post-earnings call — said it’s key is to do this deal “right, not fast,” especially as it’s become more complicated with the structure being considered “now broader” than just Starz.For the company’s fiscal first quarter, Starz added 1.8 million subscribers globally, including 700,000 domestically, to hit 26.3 million.Feltheimer had said in May on the last call that the company would unveil its plans for Starz by the late summer and close a deal by next spring as the process to monetize the premium channel and streamer moves forward.Lionsgate CFO James Barge said the key is to do the deal right, not fast.

He said it’s complicated since structure being considered is now broader since some potential partners “have expressed interest in the studio as well as Starz.”Canal+, a division of French conglomerate Vivendi, has been in the mix as potential suitor, as have Roku and Apollo Global management bidding jointly for a minority stake.