Lionsgate and Starz, a leading integrated media and entertainment company, announced Thursday an agreement under which Lionsgate will acquire Starz for a combination of cash and stock totaling $4.4 billion.

According to Lionsgate, the transaction significantly increases the combined company’s content creation capabilities, enhances its leadership in premium scripted programming and scales its global distribution footprint across mobile, broadband, cable and satellite platforms.

It also paves the way for a broad range of new content partnerships and accelerates the growth of Lionsgate and Starz’s own OTT services. In addition, the acquisition is expected to generate significant revenue and cost synergies, it was stated.

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The combined company will encompass: a 16,000-title film and television library; claimed to be the largest independent television business in the world, including 87 original series on 42 U.S. networks; a feature film business that has generated over $7 billion at the global box office over the past four years; operation of or investment in 30 channel platforms around the world, including the flagship STARZ platform, the STARZ ENCORE network and five OTT services; and a growing presence in location-based entertainment and video games driven by the company’s portfolio of brands and franchises.

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“The combination of Lionsgate and Starz brings significant scale to our portfolio of content and distribution assets and will enable us to compete successfully in today’s rapidly evolving global entertainment marketplace,” said Dr. Mark H. Rachesky, Lionsgate’s chairman of the Board.

The agreement has been approved by the boards of directors of Lionsgate and Starz and will be submitted to their respective shareholders for approval as well as to regulatory authorities.

Photo courtesy: Lionsgate