5/17, 9:24 PM (Source: TeleTrader)
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CBS makes informal offer to acquire Starz for $5B - report

American broadcaster CBS recently made an informal offer to entertainment company Lionsgate to purchase its Starz network for $5 billion, the Information reported on Friday citing sources familiar with the matter.

Acting CBS CEO Joseph Ianniello (pictured) reportedly made the informal offer to Lionsgate executives over the last few weeks, which they reportedly rejected in an attempt to solicit a higher price, the sources said. Lionsgate bought Starz, which has a library of shows that includes "Power," "American Gods" and "Outlander," for $4.4 billion in late 2016. However, the sources added that CBS was still interested in a possible deal and that it was looking at the acquisition as a possible complement to Viacom, which it is also considering purchasing.

Media reported in April that CBS and Viacom had restarted their merger talks, leading to a delay in the naming of the former's new CEO. CBS subsequently announced that it would postpone its search for a new CEO and retain Ianniello until the end of the year.

Lionsgate's shares jumped 12.57% to sell for $15.32 at 3:09 pm ET following the news.

Breaking the News / DZ