NEW YORK (TheStreet) --Shares of Lions Gate Entertainment (LGF) were higher during afternoon trading on Tuesday, coming off better-than-expected second-quarter earnings results last week, due in part to the recent acquisition of the Starz television network.
Lions Gate vice chairman Michael Burns joined CNBC's "Power Lunch" Tuesday afternoon to discuss the Starz deal and how the company continues to evolve.
"For one thing, we love the subscription business and we love the job that management is doing at Starz. We think this is a terrific asset for us, and a way to make a bigger play in television," Burns said.
He went on to describe Starz as "the high-end scripted television business," adding Lions Gate's plan to be a bigger player in that space.
Additionally, Burns explained what Starz has allowed Lions Gate to transform into.
"The real interesting thing about the Starz asset for us is the reliability of cash flows. We love the idea that month in and month out you're going to have subscription revenue coming in. We love the idea that you can take the combined company and increase your output of content," he said.
Burns feels as if Lions Gate is "becoming a content machine" and the profits it has been generating on both television and movie productions yields about $1.8 billion of new content a year.
Burns then spoke to the differences in revenue between movies and television.
"The film business is a great business because it gives you the optionality. If you catch lightning in a bottle and have a franchise, like a 'Hunger Games', you can make a ton of money. However, you can make money day in and day out in the television business," Burns explained.
Burns concluded by talking about where he sees Lions Gate's future moving forward.
"Whatever we're doing we'd like to be in a position where we can move very quickly because what's happening in the media space is it turns on a dime. So the idea that we can move quickly, that's our competitive advantage."
Separately, TheStreet Ratings rates Lions Gate as a "Hold" with a ratings score of "C." The primary factors that have impacted TheStreet Rating's 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 revenue growth and good cash flow from operations. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
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