M&A Talk Boosts Shares Of Starz Higher

Shares of Starz (NASDAQ: STRZA) traded higher on Monday morning after reports surfaced over the weekend that the company is considering a sale of itself.

The New York Post reported Friday evening that Starz is seeking around $5 billion in a potential sale of itself and the company has drawn interest from CBS Corporation (NYSE: CBS) and Lions Gate Entertainment Corp. (USA) (NYSE: LGF).

Shares of Starz were trading Monday morning with a valuation above $3 billion.

The New York Post stated that discussions are at an early stage and that a sale of the company isn't a guarantee as a "strategic alignment," or asset swaps could formulate.

CBS' Showtime is the No. 2 player in the pay-TV space, behind Time Warner's HBO. Lions Gate is a part owner in a smaller rival Epix and could also benefit from bolstering its pay-TV assets.

Starz was spun out of John Malone's Liberty Media last year but retained a 49 percent stake. Malone stated that Starz would be better off as part of a media company.

Shares of Starz were trading higher by around 1.7 percent late Monday morning at $32.76.