Byron Allen Acquires Stake in Starz from Steven Mnuchin

Byron Allen, founder of Allen Media Group, has acquired a 10.7% stake in Starz Entertainment for $25 million. The transaction was executed through Allen Family Capital, Allen's private investment firm, which purchased 1,803,786 shares at a price of $13.86 per share from Liberty 77, an investment fund led by former Treasury Secretary Steven Mnuchin. This acquisition marks Allen's first ownership in Starz, which recently separated from Lionsgate in May 2025.

Variety MagazineByron Allen buys 11% stake in Starz from Steven Mnuchin’s Liberty 77 for $25mHollywood ReporterThe WrapDeadline Hollywood

Starz, originally part of Lionsgate, has transitioned towards a streaming-focused business model, with approximately 12.7 million U.S. streaming subscribers as of the end of 2025. The company reported a total of 17.6 million subscribers across all platforms, although it has faced challenges, including a net loss of $20.7 million in the fourth quarter of 2025. Allen Media Group, established in 1993, operates a diverse portfolio that includes The Weather Channel and 27 local television stations across major U.S. networks.

The Wrap

Allen's investment is described as being for "investment purposes," with intentions to evaluate and potentially adjust his stake based on Starz's performance and market conditions. The acquisition aligns with Allen's broader strategy of engaging in media mergers and acquisitions, as he has previously expressed interest in various media properties, including Paramount and Disney's linear TV networks. Allen Family Capital has indicated that it may engage in further communications with Starz's management and board regarding operational strategies and financial matters.

Hollywood ReporterThe WrapDeadline HollywoodVariety MagazineByron Allen buys 11% stake in Starz from Steven Mnuchin’s Liberty 77 for $25m

In a statement regarding the acquisition, Allen Family Capital noted, “Allen may, from time to time, make additional acquisitions of Common Shares or other securities of Starz... and may make suggestions or proposals concerning Starz’s operations, prospects, business and financial strategies.” This indicates a proactive approach towards influencing Starz's future direction.

The WrapHollywood ReporterVariety MagazineByron Allen buys 11% stake in Starz from Steven Mnuchin’s Liberty 77 for $25mDeadline Hollywood

While the acquisition has been generally well-received, some analysts have raised concerns about the viability of traditional pay-TV models in the current media landscape. Critics argue that despite Starz's pivot to streaming, the company may still struggle to compete against larger players like Netflix and Disney+.

Deadline Hollywood

There are discrepancies regarding the exact percentage of the stake acquired, with some sources citing it as 11%. However, the consensus remains that Allen's stake is approximately 10.7%. Additionally, while Starz's subscriber numbers have been reported, the company plans to cease disclosing these figures quarterly, which may hinder transparency moving forward.

Hollywood Reporter

Looking ahead, Starz aims to enhance its OTT revenue growth and improve its financial performance, targeting a positive free cash flow of $80 million to $120 million in 2026. Allen's involvement may influence these goals, as he continues to explore strategic options for both his media holdings and Starz's future in the evolving entertainment landscape.

Hollywood Reporter