Byron Allen's Allen Family Capital has purchased a 10.7% stake in Starz Entertainment for $25 million. The acquisition, a private transaction, was made from Steven Mnuchin's Liberty 77 Capital.
Allen Family Capital bought 1,803,786 common shares at $13.86 each. This move signifies Allen's ongoing strategy of expanding his media holdings. Allen Family Capital stated that decisions regarding future investment levels will be contingent on Starz's performance, market conditions, and other available opportunities.
A Calculated Investment
The acquisition positions Allen as a significant shareholder in Starz, a company that recently separated from Lionsgate and is now operating as an independent platform. Allen Family Capital described the transaction as purely for investment purposes, with plans to continuously evaluate the position. The firm indicated a willingness to make suggestions or proposals regarding Starz's operations, strategy, and financial matters.
Shifting Media Landscape
Starz, a premium cable and streaming service, was spun out from Lionsgate in May of the previous year. This transaction occurs as Starz navigates its new independent status, with its CEO previously signaling intentions to pursue mergers and acquisitions. Allen's own media group, Allen Media Group, encompasses a diverse portfolio including The Weather Channel, local TV stations, and various digital networks and production ventures. Allen recently agreed to sell broadcast television properties in 10 markets to Gray Media for $171 million, reportedly to address debt within that segment.
Background:
Byron Allen is the founder of Allen Media Group, a privately held media conglomerate.
Allen Family Capital serves as the investment arm for Byron Allen.
Steven Mnuchin, former U.S. Secretary of the Treasury, holds a stake in Lionsgate Studios and is on its board. His firm, Liberty 77 Capital, was the seller of the Starz shares.
Starz Entertainment is a premium cable and streaming platform.
The transaction was completed as a private sale.