Lions Gate offered to sell Starz to CBS for $5.5 billion

Lions Gates Leisure supplied to promote cable channel Starz to CBS Corp for $5.5 billion after rebuffing a decrease supply, two sources aware of the matter advised Reuters.

The counter supply was made by the movie studio behind the Starvation Video games motion pictures after CBS made a casual $5 billion bid for the cable community, the sources mentioned.

CBS’s casual supply was made by Joseph Ianniello, the interim chief govt officer of CBS, about six weeks in the past and Lions Gate Leisure sought a better valuation, the sources mentioned.

Each corporations declined to remark.

The method underscores the scope of CBS’s ambitions to compete extra aggressively in a world wherein it’s squeezed by deep-pocketed tech corporations on one facet and quickly consolidating friends on the opposite.

The information lands 12 days earlier than a board assembly the place it can evaluation its choices that’s believed to incorporate initiating merger discussions with Viacom Inc. Each corporations are managed by Nationwide Amusements, which is owned by the Redstone household.

CBS’s method was first reported by the Info on Friday, citing 4 folks aware of the state of affairs.

Lions Gate purchased Starz for $4.Four billion in a cash-and-stock deal in 2016.

CBS, dwelling to well-liked reveals such because the “The Late Present with Stephen Colbert” and “The Large Bang Principle” has been wanting on the deal as a attainable complement to Viacom Inc, which CBS is also contemplating buying, the report mentioned.

Whereas media majors Walt Disney Co and AT&T Inc are tapping into their intensive movie and TV libraries to launch streaming rivals to Netflix and Amazon.com’s Prime Video, smaller gamers CBS and sister firm Viacom Inc are specializing in offering authentic content material to different distributors.

CBS is on observe to speculate greater than $eight billion in programming this yr, Ianniello had mentioned.

Shares of Lions Gate rose about 12% on the report, whereas these of CBS had been marginally down in afternoon buying and selling.

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