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

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

Lions Gate Entertainment, or simply known as the Lionsgate, an American Entertainment company had offered to sell its cable channel Starz to CBS corp. at a $5.5 billion deal after snubbing a lower offer, at least two sources familiar with the subject matter unveiled on Friday, the 17th of May 2019.

According to at least two sources with knowledge regarding the issue, the counter offer for long-hailed cable channel Starz came after Lionsgate had rebuffed an informal offer of $5 billion. Besides, the sources had also added that the informal offers were made by the interim Chief Executive of CBS, Joseph Ianniello, about one and a half months back, while Lions Gate Entertainment had asked for a higher price.

Latest CBS move had been underlining its ambition to compete more aggressively at a media world, which had rapidly been shrinking by heavy-money tech companies alongside their peers. Never the less, while being asked for the details, both companies denied to comment.

Apart from that, the news came just twelve days before a board meeting where the company would likely to review its option of a merger with Viacom Inc. In point of fact, both of those companies are controlled by the National Amusements, owned by the rich Redstone family. Back in 2016, Lions Gate had purchased Starz at a $4.4 billion cash-and-stock deal.