LionsGate Entertainment Corp. has said it’s considering a spinoff of its media networks business that includes the Starz channel, a division that accounted for half the company’s annual revenue last year.

The board of the independent Hollywood studio authorized management to explore potential capital markets alternatives, the company said in a filing last week. Options include a full or partial spinoff or issuance of a tracking stock, Bloomberg has reported.

 “There can be no assurance that any such transaction will be announced or completed,” Lions Gate said in the filing.

On an earnings call with investors, Vice Chairman Michael Burns said the company could still see benefits from operating the business while also unlocking value at a time when media businesses are trading at premium prices.

Starz’s hit shows include ‘Outlander’ and ‘Power’. The media networks unit has about 30 million subscribers overall. Revenue in the division was flat at $385 million in the quarter and profit, at $5.5 million, was down sharply due to higher programming and marketing costs, the Bloomberg report said.

Starz, which originated as a premium cable network like HBO, is also now marketed directly to consumers. It’s competing with players like Netflix Inc., which spends tens of billions of dollars on programming. Lions Gate acquired Starz for $4.4 billion in 2016.

STARZ is home to the STARZ app that offers the ability to stream or download STARZ premium content, as well as the flagship domestic STARZ service, including STARZ ENCORE, 17 premium pay TV channels, and the associated on-demand and online services.

In 2018, STARZ launched its STARZPLAY international premium streaming platform to provide subscribers access to the “best of global SVOD.” STARZPLAY has expanded its global footprint into more than 58 countries throughout Europe and Latin America along with Canada, Japan, India and Indonesia. STARZ and STARZPLAY are available across digital OTT platforms and multichannel video distributors, including cable operators, satellite television providers, and telecommunications companies around the world.