MGM Holdings Inc. is reportedly in talks to acquire full ownership of the premium cable channel Epix, in which it currently owns a stake along with partners Viacom and Lionsgate. Reuters reports that MGM is seeking to obtain the 81% of Epix that it does not already own. The report cites sources who are familiar with the matter.
“The deal would give MGM, a privately held U.S. movie studio best known for its classic film library, control of Epix and would be a boon to its TV business, as it seeks to build a stronger platform to distribute its content,” Reuters notes, adding: “Viacom is looking to sell its 50 percent stake in Epix to help pay down its $12 billion debt load, the sources said.”
The report adds: “Lionsgate has already said it is exploring options for its close to 32 percent stake in Epix following its $4.4 billion acquisition of pay TV network Starz Entertainment LLC.”
Epix would likely be valued at between $1 billion and $2 billion, the report notes.