Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Anusuya Lahiri

Here's Why Roku Collaborated With Apollo

  • 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.
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.