Billionaire John Malone is showing no sign of slowing down. The “Cable King” continues to grow and diversify his media empire. Rumors had been swirling for some time that Malone was discussing some type of a deal with Starz, and we finally learned the details of the deal today.

According to a February 11th article in the Wall Street Journal, media mogul John Malone has swapped a portion of his Starz shares for an almost 3.5% stake in Lions Gate Entertainment and a seat on the board. Analysts note this could be the first step towards a collaboration of some sort between the two media giants.

John Malone Takes 3.5% Stake And Board Seat In Lions Gate

More on the John Malone / Starz – Lions Gate deal

In return, Lions Gate is receiving a 4.51% stake in Starz (around 14.5% of the total voting power). Malone  remains in control of the firm as Starz’s largest voting shareholder, with a 6.1% stake representing 32.1% of the total voting power.

Colorado-based Starz, a media firm which includes both the Starz and Encore networks, was spun out of Malone’s Liberty Media back in 2013.

Of note, Lions Gate shares were up more than 6.5% in Wednesday morning trading, and Starz shares were up close to 1%.

More on Lions Gate

Lions Gate Entertainment, based in Santa Monica, California, has been working to grow its movie business for the last several years. It has found great success with adaptations of young-adult novels, including such  blockbuster franchises as “The Hunger Games” and “Twilight,” and its TV division has also been churning out multiple hit shows including “Mad Men,” “Anger Management” and “Orange is the New Black.”

“Lions Gate has emerged as a leader in developing global content, and this transaction creates the potential for a number of strategic opportunities around the world with them,” Malone commented in a press release after the Starz – Lions gate deal was made public.