John Malone does it again. In the first day of trading after its spinoff of Liberty Media(LMCA,LMCB,LMCAD,LMCBD), Starz(STRZA,STRZB) jumped 9.79% to close at $15.59. Despite a $1.1 billion debt burden, the Starz and Encore premium movie channels are thought to be a coveted prize for a larger media company. Starz is also investing heavily in original content such as Spartacus, and success there could send the company’s profits – and share price – soaring.
Disclosure: The author holds no position in any stock mentioned
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- Starz shares rise 8% after spinoff (marketwatch.com)
- Liberty Media spins off Starz, stock gains 10 percent in first day (denverpost.com)
- Starz Shares Rise in First Trading Day – Bloomberg (bloomberg.com)
- Liberty Media CEO Debates Merits Of A Starz-Netflix Merger (huffingtonpost.com)
