Key Points
- Starz has expressed an interest in acquiring some or all of A+E Global Media, according to a report.
- An acquisition would give Starz a significant amount of unscripted content, which is different from its current catalog of premium scripted series and movies.
- No firm deal is on the table.
Starz has expressed interest in buying some or all of A+E Global Media, a move that would expand its content offerings beyond its current slate of scripted original programming and licensed movies, according to a report.
The story, from Bloomberg News, said executives from both companies have held informal talks about a possible tie-up, which would likely involve Starz making an offer and not the other way around.
A+E Global Media is operated as a joint venture between the Walt Disney Company and Hearst Television. It is separate from ESPN, the sports network Disney and Hearst own through unequal equity stakes. Disney and Hearst recently said they were exploring offers for A+E Global Media’s business, which has been depressed in recent years on account of higher churn in the cable and satellite business that has chipped away at its distribution and advertising-related revenue.
Starz was part of Lionsgate until earlier this year. Lionsgate was one of several companies to announce an intention to separate out its cable networks business with a focus on its studio business, and the first to successfully do so. (The other two, Comcast’s NBC Universal and Warner Bros Discovery, have announced similar plans that are ongoing.)
Starz split from Lionsgate with a market capitalization of about $169 million and debt of $609 million. Executives have been working to convince investors that an independent Starz can scale in a crowded streaming landscape. Adding A+E’s mature brands and cash flow could give Starz a broader content foundation and additional leverage in the streaming marketplace, according to some industry insiders.
Content-wise, A+E and Starz could not be more different. While Starz primarily focuses on premium scripted shows and movies, A+E has historically leaned into fact-based documentaries and, as of late, reality-based series. (Its Lifetime network produces original movies aimed at women, as well as some lower-budget holiday films.)
As with most cable networks, the audience of A+E Global Media’s channels skews older, and it has lost a significant chunk of its viewership over the past few years amid higher churn at cable and satellite companies. Acquiring A+E Global Media would give Starz differentiated, but not necessarily premium, content that it could license to others (A+E Global Media already has content distribution deals with Weigel Broadcasting, the E. W. Scripps Company and Sinclair, among others) while also giving it TV shows and movies that could allow it to make broader plays in the ad-supported streaming world without bringing its own premium content to that arena.
It is difficult to know what Starz’s precise interest in A+E Global Media is, or whether any deal will actually materialize. According to Bloomberg, executives at A+E Global Media are holding out hope that someone with deeper pockets will come calling.
