By Lionsgate has unveiled a deal to spin off its studios business into a separately traded public company.
The studio business consists of Lionsgate’s TV production and Motion Picture Group divisions along with the 20,000-title film and TV library.
It will be combined with the special-purpose acquisition rights company – Screaming Eagle Acquisition Corp. – led by SPAC sponsor Eagle Equity Partners and CEO Eli Baker.
The resulting entity, Lionsgate Studios Corp., will be a publicly traded vehicle able to raise fresh capital and merge with existing businesses. A securities firm has put the value of Lionsgate’s vast library of movies and television franchises at $5.2 billion earlier this year.
The media networks business side, which mostly comprises Starz and its 28 million global subscribers, will remain in the existing publicly traded company.
The overall aim of dividing Starz and Lionsgate’s library into two separate entities is to help value each of the assets separately and more generously, and the move suggests the parent company will eventually perform a full-spinoff.
Subject to shareholder and regulatory approvals, the transaction is expected to close in the spring of 2024.
Source: THR
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