Starz is exploring an acquisition of A+E Global Media, the parent company of Lifetime and History, according to Bloomberg. The interest comes as Disney and Hearst, which each own 50% of A+E, have hired Wells Fargo to explore strategic options for the joint venture, including a possible sale or merger.
There are no active talks underway and nothing is imminent, according to an individual familiar with the situation. Still, Starz’s interest underscores a clear strategy following its separation from Lionsgate earlier this year. CEO Jeff Hirsch has made it clear that the company is focused on partnering with or acquiring traditional linear networks that lack the technical infrastructure to thrive in a digital-first landscape.
Hirsch told TheWrap that Starz can add value by helping linear content find a digital future. 70% of Starz’s current revenue comes from digital, and Hirsch said the company is focused on scaling its business around women and underrepresented audiences. He believes there are 80 million U.S. households within reach, and that Starz, currently at 20 million, can grow significantly through the right partnerships or acquisitions.
During Starz’s third-quarter earnings call, Hirsch reiterated the company’s M&A strategy. He said that if a deal fits within their leverage range, aligns with their audience focus, and offers a clear path to convert from linear to digital, it would be a home run.
A+E, despite its strong global distribution and deep content library, has struggled amid industry headwinds. The company holds more than 70,000 distinct assets and reaches 414 million households across 200 territories. Its brands include Lifetime, History, LMN, FYI, Vice TV, and several FAST channels. A+E also has stakes in Range Media Partners and Propagate Content.
But the company is not immune to the broader industry pressures. Nielsen reported that A+E accounted for just 0.9% of TV viewership in September. Hearst CEO Steve Swartz noted earlier this year that A+E is being affected by a weaker ad market and continued cord-cutting. Disney, in its most recent annual report, said its equity income from investments dropped 29% to $275 million, partly due to lower performance from A+E.
If Starz does move forward, it will be doing so in a rapidly evolving media landscape. Comcast is preparing to spin off its cable networks into a new entity called Versant. Warner Bros. Discovery plans to split its linear and streaming/studio businesses by April, and is reportedly weighing partial or full-sale transactions. Paramount has already submitted multiple acquisition offers for WBD, though all were rejected as too low. Netflix and Comcast are also reportedly evaluating WBD’s studio and streaming business.
For Starz, the market is opening up, and it sees opportunity. A+E offers a sizable footprint, high brand recognition, and a content engine that could be far more valuable if migrated to digital. Hirsch and Starz are looking to scale, and this may be one of the last moments to grab a content-rich, linear-first asset at a price that makes sense.
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