AMC Networks to acquire John Malone's Starz channel?
AMC Networks is reportedly planning to acquire John Malone's Starz cable channel, recent reports say.
The AMC cable network operator has engaged in preliminary talks to acquire the billionaire's premium TV cable channel Starz. The latter currently has a market value of around $4 billion, according to a Bloomberg report cited by CNBC.
In the wake of the acquisition rumors, the shares of Starz climbed 8 percent to $41.89 in extended trading. However, AMC spokesperson Georgia Juvelis said the company does not react on rumors alone. A spokesperson from Starz echoed the same sentiment and said the cable network firm will not comment on mere speculations, the report relays.
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Rumors about AMC's planned acquisition of Starz surfaced last year. CBS and Twenty-First Century Fox are reportedly among the other companies vying to buy out Malone's company. But in December, Bloomberg reported that Starz had terminated buyout talks with AMC and other potential buyers because of the differences in valuation.
Unnamed insiders say the most recently reported preliminary talks with AMC may still not end up in an acquisition, Rapid News Network reports.
Starz is controlled by Malone, who is the largest individual investor in the premium TV cable channel known for the shows "Outlander" and "Da Vinci's Demons." The firm is a spin-off of Liberty Media, which is also owned by Malone.
The billionaire has earlier mentioned that should the acquisition push through, the programmers of the two channels will most likely be consolidated. A merger between AMC and Starz would provide an advantage for the two channels in terms of pay-TV carrier fees. It will also create a more powerful rival for online rivals such as Amazon Prime Video and Netflix, the report explains.
Meanwhile, AMC's shares increased slightly to $74.44 in extended trading after news of the preliminary acquisition talks erupted. The channel is known for its famous post-apocalyptic show "The Walking Dead."
