If Time Warner bought Starz, it would gain control of two-thirds of the pay-TV movie market and could use the acquisition as the foundation for an over-the-top video service, according to BTIG Research analyst Richard Greenfield. The deal, despite the likely $3.2 billion price tag, would be "value creative" for Time Warner shareholders, "not simply a reward to current [Liberty Starz] shareholders," Greenfield writes in a blog post.

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