Lionsgate to spin off Hollywood studio from Starz in $4.6B deal
NY Post
Lionsgate unveiled a deal to spin off its studio business in a $4.6 billion special purpose acquisition deal to create a separately traded public company.
The deal will see Lionsgate’s studio business, comprising Lionsgate’s TV production and Motion Picture Group divisions and an 20,000-title film and TV library, merge with blank-check firm, Screaming Eagle Acquisition Corp. led by Eli Baker.
The media business, which is mostly comprised of Starz, will remain with Lionsgate.
Meanwhile, the newly merged group, called Lionsgate Studios Corp., will be a publicly traded entity that includes a library of popular movies such as “The Hunger Games”, “John Wick” and “The Twilight Saga.”
The deal — which is expected to raise approximately $350 million to fund strategic initiatives, with $175 million already committed by several investors — will close in spring 2024.
The merger follows strategic talks by the Jon Feltheimer-led Lionsgate to spin off its studio division or the Starz channel and its streaming platform.
