AMC Networks to acquire John Malone’s Starz channel?

AMC Networks Inc., the cable network operator that owns shows including “The Walking Dead“, is back in talks to acquire billionaire John Malone’s Starz, another TV programmer, according to people familiar with the matter.

“The availability of past seasons to be sampled has led people to the linear transmission”, said Saplan, who has held his post at AMC for some 20 years.

A deal would grant the companies increased leverage when negotiating fees from pay-TV carriers that have already decreased costs amid online media companies such as Netflix, Bloomberg reports. The democratisation brought about by viewers talking about what they had seen on social media had enabled companies such as AMC to produce major hit shows, without the company growing in size.

Starz ended talks for a buyout last year with potential buyers, including AMC, due to differences over valuation, Bloomberg reported in December. “They could fit well and gain in terms of market power and in terms of quality of their offerings by combination with a number of other enterprises”.

In the wake of the acquisition rumors, the shares of Starz climbed 8 percent to $41.89 in extended trading.

With traditional pay TV subscribers on the wane, a potential purchase of Starz (STRZA +5.6%) is not the best way to spend AMC Networks’ (AMCX -1.1%) “M&A powder”, says Stifel Nicolaus’ Benjamin Mogil.