Lionsgate resumes talks with Starz for possible merger

Lions Gate Entertainment Corp., which runs the film studio that produced The Hunger Games and The Twilight Saga, is back in talks to merge with cable movie channel Starz.

“Lions Gate has informed (Starz) that it intends to explore whether there is a potential mutually beneficial combination of the two companies,” Starz said in a filing Thursday with the Securities and Exchange Commission. "There can be no assurance that there is or will be any such combination."

Shares of Lions Gate rose 3% to $26.46.

Starz rose 3.8% to $30.29.

The companies have been in talks for months. In February, 2015, Lionsgate, as the company is widely known, announced a stock swap with Starz, resulting in Lionsgate owning about 4.5% of Starz shares and 14.5% of voting shares.

The deal also led to Starz’ top shareholder, Liberty Media Chairman and cable industry legend John Malone, gaining a seat on Lionsgate’s board of directors. And Malone, whose penchant for consolidation through deals is legendary in the media business, has been open about his desire to merge the companies. Last June, Malone told The Wall Street Journal that a merger of Lionsgate and Starz was possible.

As more TV fans cut the cord and flock to streaming services, premium television is in demand from advertisers and viewers. Lionsgate’s TV production unit has produced several hits in recent years for various distributors, including Mad Men, Orange Is the New Black and Nurse Jackie. And Starz would provide a key distribution channel.

Follow USA TODAY reporter Roger Yu on Twitter @RogerYu_.