- Roku, Inc (NASDAQ:ROKU) has collaborated with private-equity firm Apollo Global Management, Inc (NYSE:APO) to bid for a minority stake in the pay-TV and streaming service Starz, the Wall Street Journal reports.
- Roku and Apollo could acquire up to a 20% stake in Starz.
- Still, the partners are yet to agree on a valuation with movie and television production company Lions Gate Entertainment Corporation (NYSE: LGF-A).
- Also Read: Analysts Give Thumbs Up To This Newly Formed Media Giant; Compare It To Disney
- Lions Gate VC Michael Burns acknowledged that the recent deals in the media space gave the company confidence to consider selling or spinning off Starz.
- Selling Starz could potentially make Lions Gate an acquisition target as big players hunt for fresh content.
- In November, movie and television production company Lions Gate declared its plans to sell or spin-off Starz.
- Selling a stake in Starz would help Lions Gate raise cash and place a value on the premium channel.
- Starz is known for series like "Outlander" and "Power."
- Lions Gate acquired Starz for $4.4 billion in 2016 but failed to fulfill the deal's promise, with the combined company now worth $3 billion.
- Lions Gate and Roku forged a deal to see the studio's films run exclusively on the free, ad-supported Roku Channel after being aired on Starz.
- Price Action: ROKU shares closed higher by 0.8% at $103.95 on Tuesday.
