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Liberty Global, Discovery buy stakes in Lionsgate

2015-11-10 16:48:00| Telecompaper Headlines

(Telecompaper) Cable group Liberty Global is continuing its expansion in the content market with the acquisition of a stake in film and TV studio Lionsgate. Liberty Global and Discovery Communications each have agreed to buy 5.0 million common shares of Lionsgate from MHR Fund Management, resulting in each having a 3.4 percent stake in the company. The purchase price is USD 195 million each for Liberty and Discovery. The investment in Lionsgate gets Liberty Global and Discovery a "preferred partner relationship" for licensing rights to certain content across their markets. Productions of Lionsgate include the series Orange is the New Black, Mad Men and Nashville, as well as the Hunger Games film, the first two installments of the Divergent franchise, Sicario and The Age of Adaline. Liberty Global and Discovery will each get a seat on Lionsgate's board. This will be CEO Mike Fries for Liberty Global and CEO David Zaslav for Discovery Communications. John Malone, Liberty's chairman and a member of Discovery's board, already sits on the Lionsgate board. Emily Fine, a designee of MHR Fund Management, will also join the board, while Lionsgate founder Frank Giustra will step down from the board. 

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