SHAREHOLDER ALERT: Brower Piven Commences an Investigation into the Proposed Sale of Starz & Encourages Investors to Contact ...

The securities litigation law firm of Brower Piven, A Professional Corporation, has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by the Board of Directors of Starz (NASDAQ: STRZA, STRZB) (“Starz” or the “Company”) relating to the proposed buyout of Starz by Lions Gate Entertainment Corp. (“Lions Gate”). The firm’s investigation seeks to determine, among other things, whether the Company’s Board of Directors failed to satisfy their duties to shareholders, including whether the Board adequately pursued alternatives to the acquisition and whether the Board obtained the best price possible for the Company’s shares of common stock.

Under the terms of the agreement, each share of Lions Gate common stock will be reclassified into 0.5 voting and 0.5 newly created non-voting shares.

Shareholders of Starz Series A common stock will receive $18.00 in cash as well as 0.6784 of a share of Lions Gate non-voting stock for each share of Starz Series A they own. Based on Lions Gate’s closing stock price on June 29, 2016, Starz Series A shareholders would have received compensation valued at approximately $32.21 per share. The transaction may undervalue the Company and would result in no real gain or a loss for many long-term shareholders of Starz Series A stock, especially given that the Company’s 52-week high is $46.59. Additionally, according to Yahoo! Finance, at least one Wall Street analyst has issued a price target for Starz stock at $47.00 per share.

Shareholders of each share of Starz Series B common stock will receive $7.26 in cash and 0.6321 of a share of Lions Gate voting stock and 0.6321 of a share of Lions Gate non-voting stock for each share of Starz Series B they own. Based on Lions Gate’s closing stock price on June 29, 2016, Starz Series B shareholders would have received compensation valued at approximately $33.74 per share. The transaction may undervalue the Company and would result in no real gain or a loss for many long-term shareholders of Starz Series B stock, especially given that the Company’s 52-week high is $40.69.

If you currently own common stock of Starz and believe that the proposed buyout price is too low, or you would like to learn more about the investigation being conducted by Brower Piven, please visit our website at http://www.browerpiven.com/currentinvestigations.html. You may also request more information by contacting Brower Piven either by email at [e-mail] or by telephone at [phone].

Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160705006158/en/

Brower Piven, A Professional CorporationCharles J. Piven, 410-415-66161925 Old Valley RoadStevenson, Maryland [e-mail]