Lions Gate Entertainment (LGF.A, LGF.B) is considering splitting off its Starz premium cable channel into a separate company in a move that would allow the studio to reduce its hefty debt load, WSJ reports.
Lions Gate has been in discussions to separate the two entities through various ways including a sale, spinoff or special purpose acquisition vehicle, according to the report.
Some at the company are said to believe the deal would be an opportunity to make the movie studio business more attractive to potential suitors who may be put off by the company's outstanding debt.
LGF.A +4.2% after-hours.
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