Lions Gate in stock exchange deal with affiliates of Liberty Media Chairman Malone

Lions Gate has agreed to an exchange of stock with affiliates of John Malone that will see the Liberty Media Corp. chairman join the movie and television company's board.

The deal could set the stage for broader cooperation between Lion's Gate and Malone, a powerful figure in the media business.

In the deal, Lions Gate Entertainment Corp. will exchange 3.43 percent of its common stock for 4.51 percent of Starz stock. Starz was spun off from Liberty Media in 2013. Malone is Starz's largest voting shareholder, with approximately 32.1 percent of the total voting power of Starz.

Lionsgate CEO Jon Feltheimer and Vice Chairman Michael Burns said they see "potential to explore a broad range of strategic initiatives in the future."

The Santa Monica, California-based company's shares climbed 6.5 percent in morning trading.