“Are Lionsgate and Starz Worth More Apart Than Together? That was the logic for separating the John Wick Studio’s Company, Led by Jon Feltheimer, and the Outlander Premium TV Brand, Run by Jeffrey Hirsch. In the lead-up to the Spinoff, Execs Had Toved that Separation Wuld Unlock Value for Investors by Evaluating Each Business”, – WRITE: www.hollywoodReporter.com
That was the Logic for Separating the John Wick Studio’s Company, Led by Jon Feltheimer, and Ther Outlander Premium TV Brand, Run by Jeffrey Hirsch. In the lead-up-up to the spinoff, Execs Had Totaned the the Separation Wuld Unnelock Value Value for Investors Bus Business Separately: For Instance, Lionsg-000-000-Ple Lionsg-000-Pleth Get Crudy for Instance, Lionsg-Lionsg-LionsGBBBBBRATELY: For Instance, Lionsg-Lionsg-LionsGBBBBBBBRATELY. Throws Off Recurring Revenue Amid Production Downturns, and Starz Wound Be Better ABLE TO DIFFERENTIENT ITSELF as A Niche Streaming Service that Still Boasts Millions of Line.
It Hasn’t Worked Out Yet. Starz Has Seen A 24.8 Percent Loss in Its Share Price Since May 7. LionsGate Studios Has Seen A 23.3 Percent Loss.
And, Arguable, The Move Has Made Both Companies Acquisition Targets, Depending on What A Buyer Is Looking For. Want to Bolt-on Starz’s Shows and 19 Million North American Subscribers to A Streaming Service? Or does the Wick, Hunger Games, Saw an Now you see me Intellectual Property of Lionsgate Appeal? Legendary, Run by CEO JOSH Grode, Was Kicking The Tires on the Latter M&A Proposition. SPECULATION CENTERS ON THE COMPANIES PASSIBLY PARTNERING ON Some FILMS, AND PETENTILY AHEAD OF A More Complete Offer from Legendary.
On an aug. 7 Earnings Call, Feltheimer Talked About Bringing in A Partner to Help Run and Grow LionsGate’s Management and Production Company 3 Arts Entertainment, With An Eye Tossibing.
“We Understand Our Earnings Power But Also Understand The Scale We Have, That I Think Doing Some Kind of Strategic Transaction Down Down The Road Is Something that Aded. Wells Fargo Analyst Steven Cahall Wuld Agree, Listing Lionsgate As A M&A Target in A Research Report.
“We View Lion As An Attractive Pure-Play Studio Asset That Should Benefit From Industry M & A As Strategic Buyers Look to Beef Up Their Content IP Portfolios, Plus An IPROVING. On his Latest Analyst Call, Feltheimer Did Not Address the SPECULATION AROUND A LEGENDARY PARTNership or Takeover Directly.
And Despite Some Recent Theatric Movie Misses Like Ballerina, Feltheimer Did Spect Much of the Analyst Call Touting The Value of His Studio’s Content Portfolio, Its Movie Franchises, The Stake in 3 Arts and Ancillary Markets Like. Appeal to Possible Suitors or Partners.
Cost-Cutting Is Also In Focus. “In the World We’re in, We’re The Only Majoor With The Scale that’s Significanti Less the Other Majors, and I Wuld Say that Speaks to the Potential for Us of the Tae Look to Figure to Figure. Earnings Power, But Without Some of the Overhead that We Have, ”Feltheimer Said.
The Same M & A Chatter Appears to Surround Starz, Home To P-valley, BMF (Black Mafia Family) and the Power Franchise. “We have a phenomemenal Tech Backet and Data Stack that Is Unparalleled in the Business. And that Makes Us A very Valuable Asset, but It ALSO SETS US UP to Be A VERY STRONG PLATM TO TO SCOL. told Analysts aug. 14.
Hirsch Also, Interestingly, Noted that Value of Starz Will Become Cleerr as Giants Like Warner Bros. Discovery and Comcaast Spin Off Their Deckling TV Assets Into Stand-Alane Companies-Implying that Unlike Comchast’s Versant and Wbd’s Unnamed Spinco, Starz Has Has More Focus.
Hirsch Added, “Given the Strenguth of the Slate We Outlined, The Stability of Our Streaming-FIRST OPERATING MODEL BELIEVE STARZ is the most misunderstood and undervalued Stock in OUR Sector. ”
WHETHER THAT MAKES STARZ An Acquisition Target for TESE Spincos or A Merger Proxy (Maybe a Similarly Sized Amc Networks?) Remains to be seen.
This story appeared in the aug. 20 Issue of the Hollywood Reporter Magazine. Click Here to Subscribe.