SANTA MONICA, Calif. – Lions Gate and the media heavyweight John Malone have agreed on an exchange of stock that will also see the Liberty Media Corp. chairman join the movie and television company’s board.

The deal announced Wednesday could set the stage for broader co-operation between Lion’s Gate and Malone, a cable industry pioneer and a powerful figure in the media business.

In the deal announced Wednesday, Lions Gate Entertainment Corp. will exchange 3.43 per cent of its common stock for 4.51 per cent of Starz stock held by Malone and his affiliates.

Starz was spun off from Liberty Media in 2013. Malone will still be Starz’s largest voting shareholder, with about 6.1 per cent equity interest and approximately 32.1 per cent of the total voting power of Starz.

“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 on Wednesday.

Lions Gate’s television shows include “Orange is the New Black” and “Mad Men.” Its movies include “The Hunger Games” franchise and the first installment in the “Divergent” franchise.

Shares of the Santa Monica, California-based company climbed $2.58, or 8.7 per cent, to $32.27 in midday trading Wednesday.