A filing by Lionsgate with the SEC in connection with its $4.4 billion takeover of Starz reveals that billionaire investor John Malone backed the studio against at least two rival bids, according to The Hollywood Reporter.
“The SEC filing gives clarity to synergy numbers and expected tax savings, always a key aim for Malone in any deal-making,” THR reports. “The S-4 indicates operating cost synergies from the proposed merger exceeding $50 million and annual cash tax savings of over $150 million through fiscal 2021.”
The SEC filing was revealed today.
“With Malone eyeing tax benefits in all his deal-making, Lionsgate, which has a Canadian domicile, has long offered the potential for a cross-border merger that allows the billionaire investor and Starz to avoid the U.S. tax net,” THR notes. “Lionsgate and Starz in the filing also estimate the combined entity will have pro forma revenue of $4.55 billion in 2017 and combined EBITIDA of $750 million for a combined entity with a 16,000 film and TV library, ‘one of the world’s largest,’ the biggest indie TV business worldwide and nearly 90 TV shows on 40 networks.”