Lionsgate Studios and Starz have made a deal to split from one another in a $4.6 billion deal.
Per The Hollywood Reporter, Lionsgate Studios has announced a Special Purpose Acquisition Company (SPAC) deal to merge with Screaming Eagle Acquisition Corp.
The proposed Lionsgate-Screaming Eagle Acquisition Corp. SPAC deal, which is expected to close in the spring of 2024 subject to the proper approvals from shareholders, means that Lionsgate Studios will become a separately traded public company that exists apart from Starz.
“The newly-merged entity, Lionsgate Studios Corp., will be a publicly-traded vehicle able to raise fresh capital and merge with existing businesses,” The Hollywood Reporter’s article states. “Its biggest asset will arguably be its vast library of movies and television franchises. Rosenblatt Securities put a $5.2 billion value on Lionsgate’s library in May, meaning it’s worth more than how the whole studio is currently valued. The media networks business, which mostly comprises Starz and its 28 million global subscribers, would remain in the existing publicly-traded company.”
Per Deadline, the transaction estimates that Lionsgate Studios has an enterprise value of $4.6 billion.
Lionsgate’s CEO and vice chair speak on the SPAC deal
“This transaction creates one of the world’s largest independent pure-play content platforms with the ability to deliver significant incremental value to all of our stakeholders,” Lionsgate CEO Jon Feltheimer and vice chair Michael Burns said in a statement. “Coupled with the acquisition of the eOne platform scheduled to close next week, the expansion of our partnership with 3 Arts and the strong performance of our content slates, we’ve put together all of the pieces for a thriving standalone content company with a strong financial growth trajectory.”
“We are thrilled to be part of establishing Lionsgate Studios as one of the only pure play content companies in the public markets, which is well positioned to unlock value for both existing and new shareholders,” Screaming Eagle Acquisition Corp. CEO Eli Baker added. “We believe this will be seen as one of the most innovative and value creating transactions the market has seen in some time.”
Approximately 87.3% of Lionsgate Studios shares are expected to continue to be held by Lionsgate once the transaction goes through while Screaming Eagle is expected to own roughly 12.7%.
