Lionsgate Studios and Starz Announce Split in Mega $4.6 Billion Deal

Lionsgate Studios and Starz have actually negotiated to split from each other in a $4.6 billion deal.

Per The Hollywood Press Reporter, Lionsgate Studios has actually revealed an Unique Function Purchase Firm (SPAC) deal to combine with Shouting Eagle Purchase Corp.

The recommended Lionsgate- Shouting Eagle Purchase Corp. SPAC deal, which is anticipated to shut in the springtime of 2024 based on the correct authorizations from investors, suggests that Lionsgate Studios will certainly end up being an independently traded public business that exists in addition to 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 Press reporter’s short 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 Target date, the purchase approximates that Lionsgate Studios has a venture worth of $4.6 billion.

Lionsgate’s chief executive officer and vice chair talk 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 Chief Executive Officer Jon Feltheimer and vice chair Michael Burns stated in a declaration. “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,” Shouting Eagle Purchase Corp. Chief executive officer Eli Baker included. “We believe this will be seen as one of the most innovative and value creating transactions the market has seen in some time.”

Roughly 87.3% of Lionsgate Studios shares are anticipated to remain to be held by Lionsgate when the purchase experiences while Shouting Eagle is anticipated to possess approximately 12.7%.