Byron Allen Invests $25 Million in 11% of Starz
Byron Allen Acquires Stake in Starz
Media mogul Byron Allen has purchased a 10.7% stake in entertainment company Starz, acquiring 1.8 million shares for $25 million.
This transaction marks a significant move for Allen, who has long sought opportunities within the media sector. Previously, he was a contender for Paramount when it was under Shari Redstone’s leadership and has shown interest in Disney’s linear TV networks after CEO Bob Iger mentioned they "may not be core" to the company’s operations.
Allen Media Group, owned by Allen, has a diverse portfolio that includes the Weather Channel and various digital and linear networks, along with FAST and AVOD streaming platforms. In a notable transaction last year, Allen sold 10 local TV stations to Gray Media for $171 million.
Starz became an independent entity after separating from Lionsgate in May. Originally launched as a competitor to premium cable channels like HBO and Showtime, the company has shifted its focus towards streaming, with subscriptions now representing approximately three-quarters of its business.
Starz CEO Jeff Hirsch has communicated the company’s eagerness to explore mergers and acquisitions, especially following its separation from Lionsgate. During an earnings call last fall, he noted that Starz could assist “marooned linear networks” in transitioning to the digital landscape, utilizing its technology platform to revitalize brands that have not yet moved to digital formats.
Allen’s investment was executed through Allen Family Capital, his private investment firm and family office.
