Byron Allen Sells His Stake in Starz
Developing story first seen 1 hour ago
Byron Allen has sold his entire 10.7 per cent stake in Starz, ending his recent investment in the pay-TV and streaming company. The sale follows earlier comments that he wanted to control Starz and use it to complement his media and streaming plans.
Allen paid $25 million for the shares earlier this year and sold them during August and September for just under $45 million, according to an SEC filing. Starz had adopted a poison pill after he disclosed his purchase; the company reported growing revenue and declining losses in its latest quarterly results, supported by shows including *Power* and *Outlander*.
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In short
- Byron Allen has sold his 10.7 per cent Starz stake.
- He paid $25 million and received just under $45 million.
- Starz recently reported higher revenue and lower losses.
How this story developed
- 2 minutes ago Byron Allen has sold his entire 10.7 per cent stake in Starz, ending his recent investment in the pay-TV and streaming company. The sale follows earlier comments that he wanted to control Starz and use it to complement his media and streaming plans.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Selling the stake can be seen as a sensible response to changing circumstances: Allen more than recovered his investment, while Starz’s poison pill and lack of a clear path to control may have made his original plans harder to pursue. Exiting also lets him redirect capital towards other media ventures rather than remain a minority investor in a company whose strategy he cannot shape.
The case against
The sale may be viewed as a missed opportunity to pursue the control and strategic combination Allen had previously described, particularly as Starz reported growing revenue and narrowing losses. A committed investor could argue that building on established programmes such as Power and Outlander might create longer-term value than a relatively quick exit.
Explained simply
Starz is an American entertainment company that offers films and television programmes through a subscription channel and streaming service. Its shows include Power and Outlander, and it competes with other paid television and streaming services for subscribers.
Byron Allen is a media entrepreneur who owns and runs a group of television and media businesses. Earlier this year, he bought a significant minority stake in Starz and said he wanted to take control of the company as part of his wider media plans.
A 10.7 per cent stake gave Allen a substantial investment but did not itself give him control. Starz’s response to his purchase, including adopting a measure known as a poison pill to make a takeover harder, reflects the wider question of who should own and direct the company.
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