Byron Allen's Strategic Move: A New Chapter for Starz Investment

Allen Family Capital Secures Key Stake in Starz Entertainment

Byron Allen's investment firm, Allen Family Capital, has announced a major acquisition, securing a 10.7% ownership stake in Starz Entertainment. This transaction, valued at $25 million, involved the purchase of shares from Liberty 77 Capital, an investment entity led by Steve Mnuchin.

Transaction Details: A $25 Million Deal

The acquisition, formally declared on a recent Thursday, saw Allen Family Capital procure 1,803,786 common shares of Starz. The per-share price was set at $13.86, totaling an aggregate consideration of $25 million. This deal establishes Byron Allen, who previously held no shares in Starz, as a beneficial owner of approximately 10.7% of the company's outstanding common shares.

Mnuchin's Divestment and Prior Engagements

On March 4, Mnuchin's Liberty Funds finalized an agreement to divest all their Starz shares through a private sale for $25 million, as detailed in an SEC filing. Mnuchin, a former Hollywood producer, previously served as Treasury Secretary during President Trump's initial term. His firm also holds a 13% stake in Lionsgate Studios, where he joined the board in January 2026.

Starz's Recent Financial Performance and Market Position

Starz concluded 2025 with 12.7 million streaming subscribers in the U.S., adding 370,000 new subscribers during the year-end quarter. The total subscriber base across all Starz platforms reached 17.6 million, marking a sequential increase of 170,000. For the fourth quarter of 2025, streaming revenue was reported at $210.3 million, a decrease from $239 million in the corresponding period of the previous year. Conversely, linear and other revenue streams saw an increase to $112.5 million, up from $105.5 million at the close of 2024. The company also reduced its net loss to $20.7 million, an improvement from a $31.8 million net loss a year prior. In May 2025, Lionsgate successfully completed its separation from the Starz premium cable and streaming operations, with Starz now operating as an independently traded company.

Byron Allen's Investment Rationale and Future Intentions

Allen Family Capital, the private investment firm and family office of Byron Allen, based in Beverly Hills, views this acquisition as a strategic investment. The firm has stated its intention to continuously evaluate its investment in Starz. Depending on Starz's operational performance and prevailing market conditions, Allen may either increase or decrease his investment position. The firm also indicated the possibility of making further acquisitions of Starz Common Shares or other securities, either through open market transactions or privately negotiated deals, including direct transactions with Starz. These decisions will be informed by an assessment of Starz's business prospects, financial health, operational results, market dynamics for its securities, other investment opportunities available to Allen, general economic trends, stock market conditions, and various other influencing factors.

Overview of Allen Media Group's Extensive Holdings

Established in 1993, Allen Media Group boasts a diverse portfolio that includes the ownership and/or operation of 27 broadcast television stations affiliated with ABC, NBC, CBS, and Fox across 21 U.S. markets. Additionally, the company manages 10 television networks, reaching nearly 300 million subscribers, featuring prominent channels such as the Weather Channel, TheGrio, and HBCU Go. Allen Media Group is also a prolific producer and distributor, managing advertising sales for 74 television programs.