According to the MAE (material adverse effect) clause of the Starz-Lions Gate deal, legislation that limits intellectual property protection wouldn’t be considered a MAE.
In the merger deal between Lions Gate Entertainment (LGF) and Starz (STRZA), the MAE (material adverse effect) clause lays out the circumstances under which either party can back out of the transaction.
Starz agreed to a non-solicitation agreement with a fiduciary out. During the pendency of the merger, it can shop itself or contact other potential buyers.
On June 30, Starz (STRZA) and Lions Gate (LGF) announced a merger. Before the deal closes, Lions Gate will split into voting shares and non-voting shares.
Viacom (VIAB) has a forward EV-to-EBITDA multiple of 7.4x and a price-cash-flow multiple of 7.7x. Comparing this to its peers, Viacom appears to be undervalued.
Netflix’s interest in ramping up its original programming was quite visible last year. Netflix planned to produce six original series in 2015 and intends to take this number to 31 in 2016.
Netflix will likely to go for additional debt next year to fund its content acquisition costs. Netflix had gross debt of $2.4 billion at the end of 3Q15.
MGMB (Metro-Goldwyn-Mayer) is a so-called mini–major movie studio that produces a handful of films each year and maintains no physical production facilities.
