Lionsgate has completed a stock swap with cable pioneer John Malone that involves the U.S. premium cable channel Starz.

Their stock exchange agreement will see Lionsgate swap around 3.43% of its common stock for an estimated 4.51% Starz common stock held by Malone and his affiliates.

On completion of the share swap deal, Malone will join the board of directors at Lionsgate.

“We see tremendous value in Starz as well as the potential to explore a broad range of strategic initiatives in the future,” Lionsgate CEO Jon Feltheimer and vice-chairman Michael Burns said in a statement following the announcement of their expanded collaboration with Malone, head of Liberty Media.

The agreement also spurred speculation about a possible merger of Lionsgate and Starz down the road.

“We have always thought it is likely that at some point Starz would consider a strategic transaction with an entity such as AMC Networks or Lionsgate, and clearly from today’s announcement that is what is taking shape,” Robert Routh, an analyst at FBN Securities, said in an investors note on Wednesday.