Lionsgate vice president Michael Burns announced that the company sees significant potential in the sale of the Starz premium channels brand, and that it could be a possibility if investors evaluate its studio and television operations separately. If the transaction is completed, the change would also affect the content offer in Latin America, where the OTT StarzPlay has been available throughout the region since 2019.
In 2016, Lionsgate acquired Stars for USD 4.4 billion with the goal of expanding the scope of its productions. But due to the growing demand of the streaming market, the company ended up being forced to make a significant investment for the development of the apps of each platform. However, in the last year the company managed to recover from a loss of USD 18 million, having obtained a 40% increase in the number of subscribers to the service.
“While we continue to realize substantial synergies by having Lionsgate and Starz together, we also see the opportunity to potentially unlock significant shareholder value in a scenario where investors have the ability to value our Starz and film studio assets separately”, Burns explained. “We believe that several of the structures we are considering would allow Lionsgate and Starz to preserve many of the operating benefits that we are currently achieving“, he added.