What Happened to Starz Entertainment Corp.?
Starz, initially established as a premium cable network, has evolved into a global entertainment company with a strong focus on its streaming service and original programming. After years as part of Lionsgate, it completed its full separation into an independent publicly traded company in May 2025, now trading as STRZ on Nasdaq. In 2026, Starz is strategically prioritizing OTT revenue growth, margin expansion, and generating free cash flow, while also navigating a significant stake acquisition by media mogul Byron Allen.
Quick Answer
Starz has transformed from a premium cable network into a standalone global streaming and entertainment company. It completed its separation from Lionsgate in May 2025, becoming Starz Entertainment Corp. (STRZ) on Nasdaq. As of May 2026, Starz is strategically focused on increasing owned original content, driving OTT revenue growth, and improving profitability, having recently exited its Universal Pay-Two film deal. Media mogul Byron Allen acquired a significant 10.7% stake in the company in March 2026, indicating potential future M&A activity.
📊Key Facts
📅Complete Timeline13 events
Encore Media Corporation Founded
Encore Media Corporation, the precursor to Starz, was established as a joint venture to develop and distribute premium cable television services.
Starz Channel Launched
The flagship Starz channel was launched as a premium pay television service, initially distributed via cable systems.
Starz Inc. Spun Off from Liberty Media
Liberty Media completed the spin-off of Liberty Starz, which was subsequently renamed Starz Inc. and began trading on NASDAQ.
Lionsgate Acquires Starz Inc.
Lionsgate agreed to acquire Starz Inc. for $4.4 billion in cash and stock, making Starz a subsidiary of Lions Gate Entertainment Corporation.
Lionsgate Announces Plan to Split Starz
Following the acquisition of Entertainment One, Lionsgate revealed its plan to separate its film and television assets from Starz.
Lionsgate Rebrands to Starz Entertainment
Lionsgate rebranded to Starz Entertainment to distinguish itself from the newly formed Lionsgate Studios.
Starz Entertainment Becomes Independent Public Company
The full separation of Starz Entertainment (STRZ) from Lionsgate Studios (LION) was finalized, with Starz becoming a standalone publicly traded company on Nasdaq.
Starz Restructures Canadian Operations
Starz changed its operations in Canada, moving to a content licensing arrangement with its partner assuming operational oversight.
Starz Reports Q4 2025 Results and Ends Subscriber Disclosures
Starz reported strong Q4 2025 results, ending the year with 12.7 million U.S. OTT subscribers, and announced it would no longer disclose quarterly subscriber counts, shifting focus to revenue and profitability.
Byron Allen Acquires 10.7% Stake in Starz
Media mogul Byron Allen, through Allen Family Capital, acquired a 10.7% stake in Starz Entertainment for $25 million from Steven Mnuchin's Liberty 77 Capital, with intentions for a potential hostile takeover bid.
Starz Adopts Shareholder Protection Rights Agreement
Starz Entertainment Corp. adopted a limited duration shareholder protection rights agreement.
Starz Increases Subscription Price
Starz increased its monthly subscription price to $11.99.
Starz Reports Q1 2026 Results, Exits Universal Pay-Two Deal
Starz reported Q1 2026 earnings, announced its exit from the Universal Pay-Two film output deal, and accelerated its 20% Adjusted OIBDA margin target to H2 2027. The company also announced its first owned-original series, 'Fightland,' for a July 31 premiere.
🔍Deep Dive Analysis
Starz's journey began in 1991 with the establishment of Encore Media Corporation, launching the Encore multiplex before introducing its flagship Starz channel on February 1, 1994, as a direct competitor to established premium services. Over the years, it expanded its offerings and underwent several corporate restructurings, including being spun off from Liberty Media as Starz Inc. in 2013.
A pivotal moment arrived in 2016 when Lionsgate agreed to acquire Starz Inc. for $4.4 billion, making it a key part of the Lions Gate Entertainment Corporation. This integration aimed to create a diversified entertainment powerhouse. However, by late 2023, Lionsgate announced plans to separate its film and television studio assets from Starz, a move designed to unlock incremental value by allowing each entity to pursue independent strategic priorities.
The separation process culminated in May 2025, when Lions Gate Entertainment Corp. completed the full split of its Studio and Starz businesses. Starz Entertainment Corp. became a standalone, publicly traded company, listed on Nasdaq under the ticker symbol STRZ, while Lionsgate Studios Corp. began trading as LION on the NYSE. This marked a new chapter for Starz, enabling it to focus entirely on its premium subscription video services, both linear and over-the-top (OTT).
In 2025 and 2026, Starz has been aggressively pursuing a digital-first strategy, emphasizing original programming and targeting specific demographics, particularly women and underrepresented audiences. The company reported strong performance in late 2025, ending the year with 12.7 million U.S. OTT subscribers and exceeding its adjusted OIBDA outlook. However, in a strategic shift, Starz announced in February 2026 that it would cease disclosing quarterly subscriber counts, instead focusing on metrics like streaming revenue and profitability.
Recent developments in 2026 include the acquisition of a significant 10.7% stake in Starz by media mogul Byron Allen in March for $25 million, with Allen reportedly intending to launch a hostile takeover bid for the entire company. Furthermore, in May 2026, Starz reported its Q1 2026 results, revealing a revenue of $306.9 million and a net loss of $(164.9) million. The company also announced its exit from the Universal Pay-Two film output deal, citing lower-than-projected viewership due to subscriber overlap with Amazon. This move is expected to reduce content spend and has allowed Starz to accelerate its target of achieving a 20% Adjusted OIBDA margin to the second half of 2027. Starz is also investing in owned original content, with its first wholly-owned original series, "Fightland," set to premiere in July 2026.
What If...?
Explore alternate histories. What if Starz Entertainment Corp. made different choices?