Dec. 5, 2014, 9:16 AM
- A bet on Starz (NASDAQ:STRZA) at its current level factors in a takeover, warn some media analysts who think valuation is too high.
- The loss of exclusive rights to Disney movies in 2016 makes pinning a number on Starz problematic, they note.
- Several entertainment giants are reported to have walked away from the $5B takeover price Starz wants.
- The bull camp thinks strong original programming from Starz gives it upside.
- Starz (STRZA) was upgraded by Macquarie to an Outperform rating from Neutral.
- STRZA +2.2% premarket to $28.37.
Dec. 4, 2014, 3:33 PM
- Starz (STRZA -3.8%) still has considerable potential to be purchased by a larger media company despite CBS walking away, writes Congress Wealth Management CIO Peter Andersen.
- Anderson thinks Comcast (CMCSA -1.5%) or 21st Century Fox (FOXA +1%) might be interested in pulling the trigger near the expected Starz deal price of $5B.
Dec. 4, 2014, 9:54 AM| 1 Comment
Nov. 24, 2014, 8:20 AM
Nov. 23, 2014, 8:20 PM
- Starz (NASDAQ:STRZA) is talking to media companies about a buyout in the $5B range, according to the New York Post.
- The target deal price is a lush 46% premium over the current market cap on Starz.
- CBS (NYSE:CBS) and Lions Gate (NYSE:LGF) have both shown an interest, say sources.
- If an outright sale isn't worked out, a strategic partnership could also be in the works as Starz looks to edge into the streaming world
Oct. 30, 2014, 8:12 AM
Oct. 30, 2014, 7:37 AM
Sep. 24, 2014, 9:55 AM
- Is 21st Century Fox's (FOXA +0.1%) reported interest in Starz (STRZA +5.4%) just a head fake while it ponders another run at Time Warner (TWX +0.2%)?
- Recent moves by Time Warner look strikingly similar to what might be expected from a company prepping itself for a sale, say some analysts, while Fox's sitdown with Starz is reported to have been just a courtesy.
- Shares of Starz are off their premarket highs, but are still in rally mode as the pay-TV concern could draw interest from multiple bidders.
Sep. 24, 2014, 9:20 AM
Sep. 24, 2014, 7:15 AM
Sep. 24, 2014, 3:21 AM
- 21st Century Fox (NASDAQ:FOXA) met with Starz (NASDAQ:STRZA) yesterday to discuss a possible purchase of the company, although a person familiar with the matter says Fox took the meeting as a courtesy.
- While there is no deal yet, a full acquisition of the company would be valued at more than $3.2B, based on Tuesday's closing price.
- Starz has been recently struggling to create original programming, and also lost a deal to Netflix over accessing movies from Disney, which will take effect in early 2017.
Jul. 31, 2014, 7:48 AM
May 27, 2014, 8:25 AM
- Starz (STRZA) has dropped content from Sony Animation (SNE), according to analysis from Janney Capital.
- The initiative could lead to a savings of up to $35M a year as the company looks to grow through original programming and less expensive niche shows.
- At least one Sony Animation title, Cloudy with a Chance of Meatballs 2, is currently available on Netflix (NFLX) in what could be an important development for the streaming service.
- Netflix has built a broad array of content for the younger demographic as part of its long-term growth strategy. On top of titles from Pixar, Disney, and DreamWorks - a deal with Sony gives the company a formidable stream of content aimed for children.
May 2, 2014, 1:34 PM
- Joel Greenblatt's screen looks to find stocks with high "earnings yield" - a high ratio of profits to enterprise value. Companies are further screened for a strong return on capital. When a stock scores well with both criteria, it's usually a good company being undervalued by investors.
- For picking individual stocks, there are probably better methods, but as a group, Magic Formula names have vastly outperformed the broad market.
- Although defense names have done well over the past couple of years, the Magic Formula continues to identify Northrop Grumman (NOC +0.2%), General Dynamics (GD +1.4%), and Raytheon (RTN +0.6%) as attractive. Firearm names Smith & Wesson (SWHC +0.8%) and Sturm Ruger (RGR +0.3%) also make the cut.
- A number of videogame makers show up as well: Take-Two (TTWO +0.3%), Activision Blizzard (ATVI +0.2%), GameStop (GME +2.8%), and the struggling recent IPO King Digital (KING -0.3%).
- Not too surprisingly, the Magic Formula also continues to like plenty of big-cap tech names: Cisco (CSCO -0.2%), CA, Inc. (CA -0.5%), Microsoft (MSFT -0.5%), Hewlett-Packard (HPQ -0.5%), and Apple (AAPL +0.1%).
- Hardly market laggards, media names like Time Warner (TWX -0.8%), Viacom (VIA +1.4%), Omnicom Group (OMC), and Starz (STRZA +2.3%) also show up on the list, as do struggling multi-level marketers and for-profit education stocks: HLF, NUS, APOL, ESI, CPLA.
- Punished by investors for not being as hot as they once were, Coach (COH +0.2%), Francesca' Holdings (FRAN +0.1%), and Gap (GPS -1.3%) are Magic Formula picks today.
May 1, 2014, 7:44 AM
Apr. 7, 2014, 8:07 AM
- Starz (STRZA) CEO Chris Albrecht says a large ramp up of original content will put the network in a good position when its contract with Disney expires in 2016.
- The exec calls original shows a "core part" of its new business model.
- Last year, Starz was a breakout star with new shows Da Vinci's Demons, The White Queen, and Black Sails all drawing positive reviews and solid ratings.
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