TV

Starz looking to sell itself for $5B

The suitors are aligning for Starz.

Talks to acquire the pay-TV channel controlled by John Malone are heating up with Starz said to be seeking around $5 billion, The Post has learned.

The business has drawn interest from CBS Corp., the owner of rival premium channel Showtime, and “The Hunger Games” studio Lionsgate, sources said.

A deal for Starz could bolster either company’s existing pay-TV assets. CBS’s Showtime is the No. 2 player behind Time Warner’s HBO, while Lionsgate is part owner of smaller rival Epix, along with Viacom’s Paramount and MGM.

Earlier reports suggested 21st Century Fox had met with Starz execs, but sources said the meeting was more a courtesy than anything.

The discussions are at an early stage and could include options beyond a straight sale, such as a “strategic alignment,” or asset swaps, said sources.

Showtime, HBO and Starz are increasingly competing with streaming services like Netflix, Hulu and Amazon Prime.

That could damp demand for Starz because it’s no longer necessary to buy a cable brand to make a premium content play, sources said.

Starz, run by former HBO boss Chris Albrecht, offers a mix of movies and original series such as “The Outlander” and “Black Sails.” It has movie deals with Sony and Disney, although it is set to lose the Disney contract to Netflix after 2015.

Starz, which was spun out of Malone’s Liberty Media last year, has a market cap of $3.32 billion. The stock rose 32 cents on Friday to close at $32.20 and is up 10 percent year to date.

Malone, who owns 49 percent of Starz, has said it would be better off as part of a media company that owns other cable channels.
Starz declined comment, as did representatives for CBS and Lionsgate.