Lionsgate and Starz Split
Lionsgate Studios is spinning off as a separately traded “pure-content” entity with Screaming Eagle Equity Partners, which allows for a few advantages:
$4.6B price tag on Lionsgate Studios
$350M cash raised from the deal
$175M committed from private equity
Split from Starz
Aims to garner a larger valuation if it sells
The Lionsgate Studios deal is nearing finalization and is expected to close in April. It will trade under the NASDAQ symbol LION.
Recently, Lionsgate and Starz have extended their theatrical output deal even as they prepare for an anticipated corporate split.
The renewed agreement brings Lionsgate films to Starz sooner and closer to their theatrical release. Starz will still be exclusive to first, second, and third pay-TV windows on a per-project basis. Lionsgate promises nearly 20 theatrical releases annually with 2025 bringing some of their bigger IP's like Now You See Me 3, and The Hunger Games: Sunrise on the Reaping. A fair agreement will keep both companies fed while they await approval of the split via a shareholder vote.
