MGM to spend $1 billion for full control of the Epix movie service

           is casting itself as sole proprietor in this Epix tale.

The privately held Beverly Hills entertainment studio on Wednesday said it would spend slightly more than $1 billion to buy out its longtime partners in the Epix movie service, Viacom’s Paramount Pictures and Lionsgate.

             The transaction values the pay-TV movie network at $1.275 billion.

MGM Holdings had been a minority partner with a 19% stake in the nearly 8-year-old Epix joint venture, which includes four pay-TV channels and licensing deals with several streaming services. Viacom, which has managed the movie channel, held a 49.76% stake. Lionsgate owned 31.15%.

             

          The sale, which must be approved by regulators, reflects a shift in priorities for the various partners and MGM’s ambitions to bulk up. Last year, the movie and TV company acquired United Artists Media Group.

“The acquisition creates increased revenue diversity, new opportunities for growth, and earnings accretion for the benefit of stockholders,” Gary Barber, chairman and CEO of MGM, said in a statement.

Lionsgate’s strategy has changed. “We are shifting our investment focus to our wholly-owned platforms,” said Lionsgate CEO Jon Feltheimer.

The company in December completed its $4.4-billion takeover of the competing Starz movie service, and the Santa Monica studio wanted to put its weight behind its own asset, which has a larger television footprint than Epix.