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MGM in talks to buy Epix

US studio MGM is in talks to acquire the remaining 81% of cable channel Epix that it doesn’t already own, in a deal valued at more than US$1bn.

MGM is a partner in the joint-venture network, which includes a streaming service, with Viacom and Lionsgate but is now looking to take full control, according to Reuters.

Viacom, which holds a 50% stake, is keen to service its US$12bn debt mountain while Lionsgate’s recent purchase of Starz Entertainment could make its 31% interest in Epix surplus to requirements.

The deal would see Paramount and Lionsgate distributing their content through Epix for several years, according to Reuters sources. The proposed agreemenet is expected to value Epix at between US$1bn and US$2bn.

Epix has been expanding its operations over recent years, appointing NBCU exec Jonathan Dakss for its digital service and producing original dramas including Berlin Station. It is estimated to have 14 million subscribers.

MGM, owned by hedge funds Anchorage Capital Partners and Highland Capital Partners, emerged from bankruptcy in 2010.

It produces and distributes shows including Fargo for FX and Vikings on A&E, with a movie library including the James Bond and Rocky franchises.

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