
Lions Gate (LGF) Stock Jumps, Acquiring Starz for $4.4 Billion
NEW YORK (TheStreet) -- Lions Gate Entertainment (LGF) stock is spiking 7.16% to $22.44 in pre-market trading on Thursday after the company said it would buy media and entertainment company Starz (STRZA) for $4.4 billion in cash and stock, CNBC.com reports.
Under the terms of the deal, each share of Lionsgate common stock will be reclassified into 0.5 voting and 0.5 new non-voting shares.
Holders of each share of Starz Series A common stock will get $18 in cash and 0.6784 of a share of Lionsgate non-voting stock, based on a fixed exchange ratio, CNBC.com added.
Additionally, holders of each share of Starz Series B common stock will get $7.26 in cash and 0.6321 of a share of Lionsgate voting stock. They will also receive 0.6321 of a share of Lionsgate non-voting stock, according to CNBC.com.
Shares of Starz are rising 10.62% to $31.25 in pre-market trading Thursday.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on Lionsgate stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins.
But the team also finds weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: LGF










