NEW YORK (TheStreet) -- Shares of Starz (STRZA) are soaring 11.68% to $31.55 in pre-market trading Thursday after Lions Gate Entertainment (LGF) announced plans to purchase the media and entertainment company in a cash and stock deal valued at $4.4 billion, 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.

The two companies have held on and off discussions about a deal for over a year, Reuters noted.

Englewood, CO-based Starz provides subscription video programming.

Shares of Lions Gate are gaining 7.21% to $22.45 in pre-market trading Thursday.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on Starz stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity.

However, the team also finds weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself.

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: STRZA