STARZ COMPLETES SEPARATION FROM LIONSGATE AND BEGINS TRADING TODAY UNDER TICKER SYMBOL STRZ ON NASDAQ

Rhea-AI Summary

STARZ (NASDAQ: STRZ) has completed its separation from Lionsgate and commenced trading as a standalone public company on the Nasdaq Stock Market. The company has successfully transformed from linear to digital, with digital now accounting for 70% of revenue. STARZ boasts a subscriber base of 20 million in the U.S. and Canada as of December 31, 2024.

The separation, approved by over 99% of shareholders, positions STARZ as the leading premium entertainment destination for women and underrepresented audiences. The company's portfolio includes successful franchises like "Outlander" and "Power," with five series averaging 9-12 million multiplatform viewers per episode. The former dual share structure has been converted to a single class of stock.

Positive

• 70% of revenue now comes from digital operations, showing successful digital transformation
• Strong viewership metrics with 5 series averaging 9-12 million multiplatform viewers per episode
• Robust subscriber base of 20 million in U.S. and Canada
• Strong balance sheet and industry-leading tech stack position company for growth
• Overwhelming shareholder approval (99%) for the separation

Negative

• Potential challenges as a smaller standalone entity competing against larger streaming players
• Heavy dependence on few key franchises (Outlander and Power) for viewership

Insights

Media Industry Financial Analyst

STARZ's spinoff unlocks shareholder value through digital transformation, targeted audience focus, and improved governance structure, positioning it as an attractive streaming partner.

The spinoff of STARZ from Lionsgate marks a strategic evolution in the streaming landscape. With 70% of revenue now digital-driven and a focused demographic approach targeting women and underrepresented audiences, STARZ has successfully transformed from a traditional linear channel to a digital-first entertainment company.

The separation received overwhelming approval from 99% of shareholders, indicating strong investor confidence in the standalone strategy. Particularly significant is the transition from a dual-class share structure to a single class of stock, which substantially improves corporate governance by equalizing voting rights – a change typically viewed favorably by institutional investors.

With 20 million subscribers across the U.S. and Canada, STARZ occupies a valuable mid-tier position in the streaming hierarchy. Rather than directly competing with streaming giants, the company positions itself as a "bundling partner of choice" – a complementary service that can integrate with larger platforms, creating multiple revenue pathways through strategic partnerships.

The company's content strategy centers on franchise development, with established properties like "Outlander" and "Power" maintaining cultural relevance for over a decade. This franchise-focused approach provides valuable IP that can drive subscriber acquisition while supporting the development of spinoffs and prequels.

While the separation provides STARZ with strategic independence and focus, it also means navigating the competitive streaming landscape without the scale advantages and content pipeline of a larger media conglomerate. However, the mention of an "ongoing partnership" with Lionsgate suggests continued content collaboration, likely maintaining access to Lionsgate's production capabilities while operating as an independent entity.

***Please use the assets below moving forward and replace any previous materials for all coverage of STARZ.***
Logos, headshot and bio for President and CEO Jeffrey Hirsch HERE
Download STARZ "We're All Adults Here" reel HERE
Embed: https://www.youtube.com/watch?v=M_SCYjOBK18
Kindly link to STARZ.com in your coverage: www.starz.com

SANTA MONICA, Calif., May 7, 2025 /PRNewswire/ -- STARZ today announced that it has completed its separation from Lionsgate and returns to being a standalone public company with trading commencing today on the Nasdaq Stock Market under the ticker symbol STRZ.

STARZ successfully transitioned from linear to digital profitably and is well positioned to drive long-term success with approximately 70% of its revenue now fueled by a robust digital footprint. STARZ's targeted content offering is complementary to any platform or service, making it the industry's bundling partner of choice. As a result, it is poised to grow through capitalizing on new bundling, distribution and other partnership opportunities.

STARZ's portfolio of strong programming includes some of the most popular series on television. Focused on its valuable and scalable core demos of women and underrepresented audiences, STARZ boasts five series that average nine to 12 million multiplatform viewers per episode. STARZ also has a proven track record of creating and expanding franchises with "Outlander" and "Power," both which have remained culturally relevant for over a decade including several "Power" Universe spinoff series and the highly anticipated "Outlander: Blood of My Blood" prequel series.

The Company has a subscriber base of 20 million (as of December 31, 2024) in the U.S and Canada.

"Today marks an important milestone in our history as we unlock significant value as a standalone business and advance our position as the leading premium entertainment destination for women and underrepresented audiences," said Jeffrey Hirsch, President and CEO of STARZ. "This separation comes at a pivotal time for the industry. Our strong balance sheet, compelling programming lineup and industry-leading tech stack will enable us to be nimble and capitalize on growth opportunities, while driving long-term success for our partners, audiences, employees and shareholders. We are thankful to Jon (Feltheimer) and the entire Lionsgate team for the past eight years of collaboration as well as for the ongoing partnership we'll maintain, and I look forward to beginning this new chapter for STARZ."

The separation was approved by over 99% of both Class A and B shareholders at an April 23 meeting. The former dual share structure will become a single class of stock as of today.

About STARZ

STARZ (NASDAQ: STRZ) is the leading premium entertainment destination for women and underrepresented audiences, and home to some of the most popular franchises and series on television. STARZ offers a robust programming mix for discerning adult audiences, including boundary-breaking originals and an expansive lineup of blockbuster movies, and is embodied by its brand positioning "We're All Adults Here." Complementary to any platform or service, STARZ is available across a wide range of digital OTT platforms and multichannel video distributors and is a bundling partner of choice. STARZ is powered by an industry-leading advanced technology, data analytics and digital infrastructure and the highly rated and first-of-its-kind STARZ app.

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SOURCE Starz Entertainment LLC

FAQ

What is STARZ's new stock symbol after separating from Lionsgate?

STARZ's new stock symbol is STRZ, trading on the Nasdaq Stock Market.

How many subscribers does STARZ have in 2024?

STARZ has 20 million subscribers in the U.S. and Canada as of December 31, 2024.

What percentage of STARZ's revenue comes from digital operations?

Approximately 70% of STARZ's revenue comes from its digital footprint.

What are STARZ's main content franchises?

STARZ's main content franchises include 'Outlander' and 'Power,' both of which have remained culturally relevant for over a decade.

What was the shareholder approval rate for STARZ's separation from Lionsgate?

Over 99% of both Class A and B shareholders approved the separation at an April 23 meeting.