The stock plunged Thursday after Bloomberg reported that the premium cable television channel could not find a buyer and billionaire John Malone, who controls Starz, was considering alternatives to a sale.
CBS (CBS) , Lions Gate Entertainment (LGF) , AMC Networks (AMCX) , and 21st Century Fox (FOXA) were some of the media companies that considered purchasing Starz, but the prospective buyers concluded the asking price was too high, according to Bloomberg.
More than 1.5 million shares had changed hands as of 10:17 a.m., compared to the daily average volume of 966,066.
Separately, TheStreet Ratings team rates STARZ as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate STARZ (STRZA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and generally higher debt management risk."