Lionsgate has taken another step toward its proposed separation of studio operations from its pay-TV and streaming business, Starz.
Hollywood Studios on Wednesday revealed that it has publicly filed an amended Form S-4 registration statement with the U.S. Securities and Exchange Commission regarding the long-awaited separation of its studio business (to be called Lionsgate Studios Corporation) and its media network business. I made it. , mainly Stars.
The latest SEC filing builds on the October 2024 joint proxy statement and prospectus S-4 registration to formally separate Lionsgate’s studio business, known as LG Studios, from Starz and trade separately. It seeks to establish two public companies. The original LGEC will be renamed Starz Entertainment Corp., and the new Lionsgate will be renamed Lionsgate Studios Corp.
Lionsgate previously spun off its film and television studio business in a special acquisition company (SPAC) and established an independent publicly traded company with an eye toward formal separation from Starz. This allowed Lionsgate Studios to launch as an independent company listed on the NASDAQ, with its vast library of film and television franchises as its largest asset.
The SPAC transaction was structured with the parent company retaining 87.3 percent of Lionsgate Studios’ stock, and blank check company Screaming Eagle Acquisition Corporation controlling the remaining 12.7 percent.
Hollywood studios have been exploring options for Starz, including formally separating pay-TV and streaming operations from studio operations. The goal appears to be to create two separate companies to allow investors to separately value Starz and studio assets as the media and entertainment landscape shrinks.
And while some potential suitors appear to view Starz as a streaming platform, Lionsgate and its programming library could become a potential indie studio acquisition as digital giants like Apple and Amazon move into Hollywood. Some people are considering it as
After the planned formal separation is complete, pre-deal shareholders of Hollywood studio Lionsgate will own shares in two separately traded public companies. The transaction involves a complex stock exchange structure for shareholders and is intended to make holders of LGEC and LG Studio common stock “essentially tax-free for U.S. federal income tax purposes.”
The prospectus contains other details of the proposed corporate structure for the separate studio and media network businesses. Lionsgate plans to hold an annual general meeting and special general meeting at its Vancouver headquarters on an unspecified date to obtain approval for the planned separation agreement, according to an SEC filing.
The Lionsgate Board of Directors recommends approval of a plan of agreement for the formal separation of the studio business and Starts. Lionsgate said that after the deal closes, the studio business will be run by CEO John Feltheimer, Michael Burns, vice chairman and CFO Jimmy Burge.
Feltheimer, who has run Lionsgate since 2000, recently renewed his contract with the studio, extending his CEO contract in August for five years until July 31, 2029. After Stars closes, its president and president, Jeffrey Hirsch, will be in charge of managing the company. CEO, Starz Networks President Alison Hoffman, CFO Scott McDonald, and others.
