STARZ ENTERTAINMENT CORP. ADOPTS LIMITED DURATION SHAREHOLDER PROTECTION RIGHTS AGREEMENT

Rhea-AI Summary

Starz Entertainment Corp. (NASDAQ: STRZ) adopted a limited-duration shareholder protection Rights Plan effective March 10, 2026, expiring March 10, 2027 unless shareholders extend to March 10, 2029. The plan issues one right per common share and triggers if any person/group acquires 17.5% beneficial ownership.

Exercisable rights allow holders (other than the triggering party) to buy shares at a 50% discount or be exchanged one-for-one for common shares; rights will be paid as a dividend to holders of record on March 20, 2026.

Positive

• Limited-duration Rights Plan provides short-term defense until March 10, 2027 (extendable to 2029)
• Rights issued one-per-share and distributed as a dividend to record holders on March 20, 2026

Negative

• Trigger threshold set at 17.5% could restrict accumulation and deter potential strategic buyers
• 50% discounted issuance may dilute existing ownership if rights are exercised or exchanged

News Market Reaction – STRZ

+2.07%

1 alert

+2.07% News Effect

+$5M Valuation Impact

$239M Market Cap

0.0x Rel. Volume

On the day this news was published, STRZ gained 2.07%, reflecting a moderate positive market reaction. This price movement added approximately $5M to the company's valuation, bringing the market cap to $239M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Rights plan expiry: March 10, 2027 Possible extension: March 10, 2029 Trigger threshold: 17.5% +3 more

6 metrics

Rights plan expiry March 10, 2027 Initial expiration date of shareholder protection rights plan

Possible extension March 10, 2029 Latest date if extended by shareholder resolution

Trigger threshold 17.5% Beneficial ownership of outstanding common shares that triggers rights

Exercise discount 50% Discount to then-current market price for rights holders if triggered

Record date March 20, 2026 Date on which existing holders receive rights as a dividend

Rights per share 1 right per common share Rights issued on all outstanding and new common shares

Market Reality Check

Price: $14.02 Vol: Volume 144,592 is at 0.71...

normal vol

$14.02 Last Close

Volume Volume 144,592 is at 0.71x the 20-day average of 202,297, indicating muted trading. normal

Technical Shares at $15.43 are trading above the 200-day MA of $12.98 but sit 32.85% below the 52-week high of $22.98.

Peers on Argus

Sector peers showed mixed moves, with names like KWM and CNVS moving in opposite...

1 Up 1 Down

Sector peers showed mixed moves, with names like KWM and CNVS moving in opposite directions and no clear, unified trend, supporting this as a stock-specific development.

Historical Context

4 past events · Latest: Feb 26 (Positive)

Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Feb 26	Q4 2025 earnings	Positive	+14.8%	Improved Adjusted OIBDA and leverage with strong OTT subscriber growth.
Jan 26	Earnings call notice	Neutral	+3.4%	Announcement of Q4 2025 earnings release and investor conference call.
Nov 13	Q3 2025 earnings	Negative	-6.3%	Quarterly loss and leverage metrics despite subscriber and engagement growth.
Oct 13	Earnings call notice	Neutral	-1.1%	Scheduling and webcast details for Q3 2025 earnings release.

Pattern Detected

Recent news has generally seen price moves aligned with the perceived tone of the announcements, including strong positive reactions to favorable earnings.

Recent Company History

Over the last few months, STARZ has centered news flow on quarterly earnings and related conference calls. Q3 2025 results on Nov 13, 2025 featured losses and saw a share decline, while Q4 2025 results on Feb 26, 2026 highlighted improved Adjusted OIBDA of $55.5 million and leverage at 2.9x, with a strong positive price reaction of 14.82%. Scheduling announcements on Oct 13, 2025 and Jan 26, 2026 produced modest moves. Today’s rights plan sits against this backdrop of improving operating metrics and active shareholder dynamics.

Market Pulse Summary

This announcement introduces a limited-duration rights plan that becomes exercisable if any holder r...

Analysis

This announcement introduces a limited-duration rights plan that becomes exercisable if any holder reaches 17.5% beneficial ownership, allowing other shareholders to buy stock at a 50% discount or receive an exchange. It follows recent filings showing a major holder exiting and improved Q4 2025 operating metrics with Adjusted OIBDA of $55.5 million. Investors may watch upcoming 8-K disclosures, ownership filings, and future earnings updates to assess how governance and the shareholder base evolve.

Key Terms

shareholder protection rights agreement, rights plan, beneficial ownership, record date, +4 more

8 terms

shareholder protection rights agreement financial

"adopted a limited-duration shareholder protection rights agreement (the "Rights Plan")"

A shareholder protection rights agreement is a legal contract that sets out specific safeguards for investors’ ownership stakes, such as limits on how shares can be sold, protections against dilution, and procedures for resolving disputes or major decisions. It matters to investors because it acts like an insurance policy or safety net—clarifying who gets a say, how value is preserved, and what happens if control or capital structure changes, which can directly affect the value and influence of their investment.

rights plan financial

"The Rights Plan is effective immediately and expires on March 10, 2027"

A rights plan is a board-authorized mechanism that gives existing shareholders the right to buy additional shares at a discount if a single investor accumulates a large stake, making an unwanted takeover much more costly and diluting the buyer’s control. It matters to investors because it can protect a company’s long-term strategy from hostile bids but also can reduce the chance of a takeover premium or dilute share value, so shareholders should assess whether the plan serves their interests—think of it as a rule that makes a sudden purchase of a house much harder and more expensive for an aggressive buyer.

beneficial ownership financial

"become exercisable only if a person or group has acquired beneficial ownership of 17.5%"

Beneficial ownership means the person or entity that actually enjoys the benefits of owning shares or other assets — such as receiving dividends, voting rights, or price gains — even if the legal title is held in another name. For investors it matters because knowing who truly controls and profits from a company reveals who can influence decisions, exposes potential conflicts of interest or hidden concentration of power, and affects transparency and risk in the stock.

record date financial

"For Common shares issued and outstanding as of the record date, being March 20, 2026"

The record date is the specific day when a company determines which shareholders are eligible to receive a dividend or participate in an upcoming vote. It’s like a cutoff date; if you own the stock on that day, you get the benefits or voting rights. This date matters because it decides who qualifies for certain company benefits.

dividend financial

"the rights will be paid to holders of such Common shares by way of a dividend"

A dividend is a payment that a company gives to its shareholders, usually from its profits. It’s like a bonus or reward for owning the company's stock, and it can provide a steady income stream for investors. Companies pay dividends to share their success with the people who own their stock.

form 8-k regulatory

"details about the Rights Plan in a Form 8-K, with the U.S. Securities and Exchange Commission"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

securities and exchange commission regulatory

"Form 8-K, with the U.S. Securities and Exchange Commission (the "SEC") on EDGAR"

A national government agency that enforces rules for buying, selling and disclosing information about stocks and other investments, acting like a referee and scorekeeper for financial markets. It requires companies to share clear, regular financial and business information and investigates fraud or rule-breaking, which matters to investors because those rules and disclosures help ensure fair prices, reduce hidden risks and make it easier to compare investment choices.

sedar+ regulatory

"with the Canadian Securities Administrators on SEDAR+ at www.sedarplus.ca"

SEDAR+ is Canada’s centralized online system where publicly traded companies submit required regulatory documents such as financial reports, prospectuses and disclosure statements. It gives investors a single, searchable place — like a public library or online filing cabinet — to check a company’s official records for transparency, compare performance, and verify material information before making investment decisions.

AI-generated analysis. Not financial advice.

SANTA MONICA, Calif. and VANCOUVER, BC, March 10, 2026 /PRNewswire/ -- Starz Entertainment Corp. (NASDAQ: STRZ) (the "Company" or "STARZ") today announced that its Board of Directors (the "Board") unanimously adopted a limited-duration shareholder protection rights agreement (the "Rights Plan"). The Rights Plan is effective immediately and expires on March 10, 2027, unless extended by shareholder resolution to March 10, 2029, or earlier terminated or amended by the Board.

The Board determined to adopt the Rights Plan as they believe it is in the best interest of the Company and allows it to pursue its long-term strategic plan and maximize value for all shareholders. The Rights Plan applies equally to all current and future shareholders. The Rights Plan is not intended to deter offers or preclude the Board from considering offers that are fair and otherwise in the best interest of the Company's shareholders.

The Rights Plan, which is designed to allow the Company's shareholders to realize the long-term value of their investment, reduces the likelihood that any person or group could gain control of the Company's shares without appropriately compensating shareholders for that control.

ADDITIONAL INFORMATION ON THE RIGHTS PLAN

The Rights Plan is similar to those plans adopted by other publicly traded companies. Pursuant to the Rights Plan, the Company is issuing one right for each outstanding Common share of the Company. For Common shares issued and outstanding as of the record date, being March 20, 2026, the rights will be paid to holders of such Common shares by way of a dividend and for any new Common shares issued after the record date and until the date the rights become exercisable or the earlier expiration, exchange or redemption of the rights, the rights will accompany such newly issued Common shares. The rights will generally become exercisable only if a person or group has acquired beneficial ownership of 17.5% or more of the Company's outstanding Common shares.

Any person or group who currently owns more than this triggering percentage may continue to own such shares of the Company; however, any such person or group may not acquire any additional shares without triggering the Rights Plan. If the rights become exercisable, all holders of rights (other than the person or group triggering the Rights Plan, whose rights would become void) will be entitled to acquire Common shares of the Company at a 50% discount to the then-current market price or the Company may exchange each right held by such holders for one Common share of the Company.

The Rights Plan is contained in an agreement between the Company and Computershare Investor Services Inc., as rights agent, dated March 10, 2026, the full text of which will be available, along with additional details about the Rights Plan in a Form 8-K, with the U.S. Securities and Exchange Commission (the "SEC") on EDGAR at www.sec.gov and with the Canadian Securities Administrators on SEDAR+ at www.sedarplus.ca. The summary of the Rights Plan contained herein is qualified in its entirety by the full text of the Rights Plan.

About STARZ

STARZ 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.

Investor Inquiries - Contact:
Nilay Shah
nilay.shah@starz.com

Press Inquiries - Contact:
Jennifer Minezaki
jennifer.minezaki@starz.com

The matters discussed in this press release include forward-looking statements. Such statements are subject to a number of risks and uncertainties. Forward-looking statements may be identified by the use of forward-looking terminology, including the terms "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "projects," "forecasts," "may," "will," "could," "would" or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts and are based on management's current expectations, estimates, forecasts and projections about the Company's business and the industry in which the Company operates. These estimates and assumptions involve known and unknown risks, uncertainties, and other factors that are in some cases beyond management's control. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including, but not limited to: the benefits of the separation of the Lionsgate's Studios Business and Lionsgate's STARZ Business (the "Separation"); unexpected costs related to the Separation; the substantial investment of capital required to produce, market, and distribute programming; budget overruns; limitations imposed by our credit facilities and notes; unpredictability of the commercial success of our programming; risks related to acquisition and integration of future acquired businesses; the effects of dispositions of businesses or assets, including individual series or film libraries; the cost of defending our intellectual property; technological changes and other trends affecting the entertainment industry; potential adverse reactions or changes to business or employee relationships; the impact of global pandemics on our business; weakness in the global economy and financial markets, including a recession and past and future bank failures; wars, terrorism and multiple international conflicts that could cause significant economic disruption and political and social instability; labor disruptions and strikes; and the other risks and uncertainties set forth in Starz's Annual Report on Form 10‑KT filed with the SEC on February 26, 2026. The Company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise, except as required by law.

View original content:https://www.prnewswire.com/news-releases/starz-entertainment-corp-adopts-limited-duration-shareholder-protection-rights-agreement-302710082.html

SOURCE Starz Entertainment LLC

FAQ

What does the STARZ (STRZ) Rights Plan adopted March 10, 2026 do?

It places a temporary shareholder protection plan effective immediately and expiring March 10, 2027. According to the company, the Rights Plan issues one right per common share and triggers if a person or group acquires 17.5% beneficial ownership, protecting long-term shareholder value.

How and when will STRZ shareholders receive the rights under the March 2026 plan?

Rights will be distributed as a dividend to shareholders of record on March 20, 2026. According to the company, one right is issued per outstanding common share and future newly issued shares will carry rights until expiration or earlier termination.

What happens if a person or group acquires 17.5% of STRZ shares?

If the 17.5% threshold is crossed, the rights become exercisable for non-triggering holders at a 50% discount. According to the company, the triggering party's rights would be void and other holders may acquire discounted shares or receive exchanged shares.

Can the STARZ Rights Plan be extended beyond March 10, 2027?

Yes, the Rights Plan can be extended by shareholder resolution to March 10, 2029. According to the company, the Board may also terminate or amend the plan earlier if it determines such action is in shareholders' best interests.

How could the STRZ Rights Plan affect potential takeover offers?

The plan is designed not to block fair offers but to reduce hostile control without appropriate compensation to shareholders. According to the company, the Rights Plan aims to allow the Board to pursue long-term strategy while still considering fair proposals.

Where can investors find the full text of the STARZ Rights Plan (STRZ)?

The full Rights Plan agreement and details will be filed in a Form 8-K with the SEC and on SEDAR+. According to the company, the agreement with Computershare as rights agent dated March 10, 2026 will be available on those regulatory filing sites.