Lionsgate to Acquire Starz in $4.4 Billion Deal

Lionsgate is set to (finally) acquire Starz in a deal valued at $4.4 billion, spread across cash and stock. The two companies had previously flirted for quite some time.

Under the terms of the agreement, each share of Lionsgate common stock (LGF) will be reclassified into half voting and half newly created non-voting shares. Holders of Starz Series A common stock (STRZA) will also receive $18 in cash per share, as well as 0.6784 of a share of Lionsgate non-voting stock. Essentially, that offer adds up to a total value of $32.73 per share, an 18 percent premium for STRZA shareholders.