Lionsgate is to explore a sell-off of its Starz channel.
The production company’s vice chairman Michael Burns has told analysts that they see the potential to “unlock significant capital value” were investors able to assess its studio and television operations separately.
A move to spin-off or sell-off the channel would be the latest in a series of big-money transactions that already includes the purchase of MGM by Amazon and Discovery’s merger into Warner Media.
A number of scenarios are said to be under discussion.
Lionsgate acquired Starz in 2016 for $4.4 billion with a view to expanding the reach of its productions. However, the demand for streaming meant the company also needed to invest in a variety of apps for the various available platforms.
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n the last year has been able to turn losses of $18.5 million into a $7.5 million profit. It has also grown subscriber numbers by 40% to reach a global 18 million.