Liberty Media Chairman John Malone is swapping shares of premium cable network Starz in exchange for an ownership stake in Lionsgate and a seat on the board of directors.

Specifically, Lionsgate will swap 3.43% of its common stock in exchange for 4.51% of Starz Series A and Series B common stock, representing 14.5% of the voting power of Starz common stock. Even after the swap, Malone remains Starz’ largest voting shareholder, with an approximate 6.1% equity interest and 32.1% voting power of Starz.

The transaction is interesting because both companies are seen as acquisition targets. In November, the New York Post reported that Lionsgate, CBS Corp. and possibly others had been considering buying Starz, but that story quickly fizzled. A month later, Starz CEO Chris Albrecht dismissed the rumors, saying “I have said from the very beginning that selling your company is not a strategy. I wake up one day reading everyone wants to buy Starz, and the next day I wake to find out nobody wants to buy Starz.”

Still, Malone’s involvement in any media company means that consolidation and ownership changes are a possibility. Two years ago, Liberty Media spun off Starz, with analysts speculating that the spin off was the precursor to an acquisition.

Lionsgate and Starz have an existing relationship, with Starz licensing more than 500 of Lionsgate’s movies. The two companies also have worked together on two TV shows: Boss, starring Kelsey Grammer and Crash, starring Dennis Hopper and Eric Roberts.

Lionsgate itself has been the subject of acquisition rumors, especially in light of the success of its hugely successful Hunger Games franchise.

Shares of both Lionsgate and Starz closed higher on Wednesday.

Read more: The New York Times, Variety

Brief Take: Malone’s new ownership stake in Starz could be more than just a board seat: Starz could provide a built-in distribution channel for Lionsgate that could extend past cable to OTT and other services.

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