Lionsgate to acquire Starz for 4.4 billion

[terry78]

http://www.nytimes.com/2016/07/01/b...uire-starz-a-pay-channel-for-4-4-billion.html


They are seriously trying to put themselves in the top tier.m

 

[Matt]

Wow. Lionsgate got ripped off. Lucasfilms sold for 4 billion. They are paying more for a third rate media conglomerate (that isn't terribly successful) than Disney paid for the most profitable franchise in the world. They have basically rolled the dice that American Gods becomes the next Game of Thrones (and frankly, not enough people subscribe to Starz for it to ever reach that level...and even if it does, Game of Thrones is not worth a billion dollars, much less four).

All I know is they better not mess with Ash vs the Evil Dead.

 

[Lighthouse]

Wow. Lionsgate got ripped off. Lucasfilms sold for 4 billion. They are paying more for a third rate media conglomerate (that isn't terribly successful) than Disney paid for the most profitable franchise in the world. They have basically rolled the dice that American Gods becomes the next Game of Thrones (and frankly, not enough people subscribe to Starz for it to ever reach that level...and even if it does, Game of Thrones is not worth a billion dollars, much less four).

All I know is they better not mess with Ash vs the Evil Dead.

To be fair, I'm pretty sure Lucas sold that at a lower price. He could have gotten waaaay more than 4 billion if he'd wanted to.

 

[Fallen Angel]

Wow. Lionsgate got ripped off. Lucasfilms sold for 4 billion. They are paying more for a third rate media conglomerate (that isn't terribly successful) than Disney paid for the most profitable franchise in the world. They have basically rolled the dice that American Gods becomes the next Game of Thrones (and frankly, not enough people subscribe to Starz for it to ever reach that level...and even if it does, Game of Thrones is not worth a billion dollars, much less four).

All I know is they better not mess with Ash vs the Evil Dead.

That's not how business works.

 

[harryoscop]

Is Starz really worth 4.4 Billion???

 

[Matt]

To be fair, I'm pretty sure Lucas sold that at a lower price. He could have gotten waaaay more than 4 billion if he'd wanted to.

True. Lucas was not worried about profit (after all, it almost all went to charity).

That's not how business works.

Which part?

Is Starz really worth 4.4 Billion???

At the end of the day, any product is worth what someone else will pay for it. So yes, Starz is worth 4.4 billion dollars as they found someone who would pay 4.4 billion dollars for the company. Now will the purchase ultimately be a smart one that pays off? I have my doubts.

 

[Logan0327]

 

[Kane52630]

edit.

 

[terry78]

Hell, I'm worth 4.4 billion if I could prove it.

 

[Shifty]

Ouch. Is this so Lionsgate can add Outlander to their theme park?

 

[Marvolo]

Wow. Lionsgate got ripped off. Lucasfilms sold for 4 billion. They are paying more for a third rate media conglomerate (that isn't terribly successful) than Disney paid for the most profitable franchise in the world. They have basically rolled the dice that American Gods becomes the next Game of Thrones (and frankly, not enough people subscribe to Starz for it to ever reach that level...and even if it does, Game of Thrones is not worth a billion dollars, much less four).

All I know is they better not mess with Ash vs the Evil Dead.

Disney got an amazing deal. They paid a small amount compated to what they gained in return. Skywalker sound, Lucasfilm, Lucasarts, ILM, all things star wars, and Indiana Jones. Hell, they made back there $4 billion from the star wars merchandise alone.

So its hard to compare the bargain-of-the-century price that Disney paid for all of Lucas's stuff to the price that Lionsgate paid for Starz.

 

[chamber-music]

Disney paid $4 billion for Marvel as well.

Lionsgate paying more for Starz than Disney did for Lucasfilm and Marvel Entertainment seems odd.

Lucasfilm and Marvel Entertainment are both far more valuable than Starz I would imagine.

 

[dude stannis]

Is Starz really worth 4.4 Billion???

 

[dude stannis]

Really, really hope this doesn't affect Black Sails and Ash vs Evil Dead though.

 

[-JKR-]

Wait a minute!

There's one important thing to consider in this deal.

Starz isn't just a single cable TV channel. They're a media company active in TV, home media (they distribute The Weinstein Company's films on home video and digital, amongst many others), and probably has a vast library and back-catalog.

And to Lionsgate this probably isn't about where Starz is currently at, but what they can do to maximize their profits by jumping into the pay TV biz.

 

[dude stannis]

I figure LGF just want the Anchor Bay catalogue.

 

[-JKR-]

That, and of course their own pay TV channel.

 

[chamber-music]

If we can get a Judge Dredd series out this I will be happy.

 

[dude stannis]

That, and of course their own pay TV channel.

Yeah, it'll be cheaper to play all their movies on cable that way in the long term.

 

[mclay18]

Ouch. Is this so Lionsgate can add Outlander to their theme park?

Starz doesn't produce Outlander, they just air it. But it's one of the bigger shows they have right now, the first season gained 5 million viewers per episode on all platforms (streaming, over-the-air, VOD). It's not Game of Thrones type numbers but there's definitely room for growth. And it got a two-season renewal, which is hard to get.

And it's not like Lionsgate owns a pay-TV movie channel already, they founded Epix back in 2008 with Paramount and MGM. And their Summit titles are on a long-term deal at rival HBO.

I don't think we'll see Lionsgate's titles suddenly shift to Starz next year, unless they want to pay a penalty to HBO and its Epix co-founders.

 

[Pickleweasel]

Starz is more than worth 4.4 billion

 

[Stringer]

I really hope this doesn't effect Power.

 

[mclay18]

It shouldn't affect Starz's hit shows -- that's partly why LGF bought them. Another thing to take note is that Starz's Encore channel has 38 million subscribers, partly due to Encore being offered up by itself (separate from Starz) by different cable and satellite providers.

That's 4 million more than what HBO has, and almost three times the subscribers than Epix (which is almost 10 million). I wouldn't be surprised if Lionsgate withdraws from Epix entirely and sells their stake to a different company, due to the Starz acquisition.

 

[CJ]

So what exactly
does this mean for Starz? Will they still air films by Columbia Pictures?

Having just lost Disney to Netflix, I've considered cancelling my subscription. If they lose Sony too, I'm done.

Starz doesn't produce Outlander, they just air it. But it's one of the bigger shows they have right now, the first season gained 5 million viewers per episode on all platforms (streaming, over-the-air, VOD).

Wow, That's crazy. I tried watching that show, after seeing so many ads for it. It is, (In my opinion) one of the most boring TV shows I've ever seen.

 

[-JKR-]

So what exactly
does this mean for Starz? Will they still air films by Columbia Pictures?

Of course will they still air films by other studios (such as Sony/Columbia).