M&A Talk Boosts Shares of Starz Higher

Shares of Starz STRZA traded higher on Monday morning after reports surfaced over the weekend that the company is considering a sale of itself. The New York Post reported Friday evening that Starz is seeking around $5 billion in a potential sale of itself and the company has drawn interest from CBS CBS as well as Lionsgate. LGF Shares of Starz were trading Monday morning with a valuation just above $3.0 billion. The New York Post stated that discussions are at an early stage and that a sale of the company isn't a guarantee as a “strategic alignment,” or asset swaps could formulate. CBS' Showtime is the number two player in the pay-TV space, behind Time Warner's TWX HBO. Lionsgate is a part owner in a smaller rival Epix and could also benefit from bolstering its pay-TV assets. Starz was spun out of John Malon's Liberty Media LMCA last year but retained a 49 percent stake. Malon stated that Starz would be better off as part of a media company. Shares of Starz were trading higher by around 1.58 percent late Monday morning at $32.71.