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.
Viacom is looking to sell its 50 percent stake in Epix to help
pay down its $12 billion debt load, the sources said.
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.
Under the terms being discussed, Paramount and Lionsgate would
continue to distribute their shows and movies through Epix for
several years, according to one of the sources, cautioning that
there is no certainty an agreement will be reached.
Any deal would likely value Epix, which comes with an online
streaming service, between $1 billion to $2 billion, the sources
added.
The sources asked not to be identified because the negotiations
are confidential. Representatives for MGM, Epix, Lionsgate and
Viacom declined to comment.
Famous for its library that includes James Bond, Rocky and other
classic movies, MGM co-produces and distributes television shows
such as Teen Wolf on MTV, Vikings on A&E and Fargo on FX. It
also owns MGM-branded U.S. channels that largely play its films
and international networks.
Viacom CEO Robert Bakish, who took over as CEO late last year,
is looking to turn around the media company's business, which
has underperformed due to lackluster ratings and ad revenue.
Bakish told investors at Deutsche Bank's media and
telecommunications conference this week that he is looking to
make Viacom's debt investment grade, and that the company will
sell non-strategic assets.
Epix, whose shows include "Berlin Station" and "Graves," has
about 14 million subscribers, according to research firm SNL
Kagan. MGM has been exploring its options for some time
following its emergence from bankruptcy six years ago. It is
controlled by hedge funds including Anchorage Capital Partners
and Highland Capital Partners.
(Reporting by Jessica Toonkel in New York and Liana B. Baker in
San Francisco; Editing by James Dalgleish)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
![](column_spacer.png) |
|