By Lillian Rizzo, Benjamin Mullin and Joe Flint Updated Oct. 8, 2019 7:04 pm ET Lions Gate Entertainment Corp. LGF.B -3.42% is considering splitting off its Starz premium-cable channel into a separate company, as the studio looks to reduce its hefty debt load and allow shareholders to invest directly in either of the businesses, according to people familiar with the matter.
A special-purpose acquisition company, commonly known as a SPAC, is a public company created with the purpose of acquiring an asset. In deals of this nature, the operators of the company essentially raise money from the public markets to finance the deal. Starz is best known for its original series, including “Power” and “Outlander,” both of which have strong followings. But this summer, AT&T Inc. ’s DirecTV unit cut the amount it pays Lions Gate to carry Starz and Encore during a renegotiation, and Comcast Corp. is considering dropping both channels from its premium channel packages when the deal expires at the end of the year, people familiar with the matter said.
Investors have cooled on Lions Gate. Two years ago, its stock was trading at more than $30. On Tuesday it closed at $8.46.
Who tf watches starz?
Not a bad idea, maybe it's a clause that would help with the crossplay of the streaming networks?