Lionsgate Unveils Further Information on Intended Division into Two Public Firms: One Focused on Film and TV Production, the Other Centered on Starz

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Lionsgate Unveils Further Information on Intended Division into Two Public Firms: One Focused on Film and TV Production, the Other Centered on Starz

Lionsgate is gearing up for its highly anticipated split into two separate entities, and they’ve just released more details to investors. One entity will focus on film and TV production, while the other will be dedicated to media networks, with Starz taking center stage. The company has filed a public Form 10 with the SEC, which includes a proxy statement outlining the assets and key points of the separation process. You can find the full document, all 500-plus pages of it, right here. Once the regulatory agency gives the green light, a special shareholder meeting will be scheduled for the final vote.

In the meantime, there’s some exciting news on the entertainment front. ABC has extended the cast options for the comedy series “Home Economics,” leaving fans on the edge of their seats. And if that’s not enough, the trailer for season 2 of “Heels” is out, promising more drama and action as Jack and Ace continue their fight over their late father’s legacy.

The split has been in the works for a while now, and while the exact timing is still up in the air, management is hoping to wrap things up in the coming months. The company has been exploring various restructuring options since November 2021, including spinoffs and partnerships with investors. It’s been a wild ride for media companies in the past year, with industry fluctuations and economic challenges affecting deal-making. But Lionsgate is determined to navigate through it all and emerge as two strong, independent entities.

Lionsgate CEO Jon Feltheimer expressed his excitement about the split, stating, “We remain excited by the prospect of separating Lionsgate and Starz into standalone companies with strong financial foundations that will allow each company to pursue its own distinct strategy while offering investors the opportunity to own both a pure-play publicly traded content studio and a premium subscription platform.”

Despite the split, the management teams and boards of both companies are expected to remain largely unchanged. The filing refers to the two new companies as “New Lionsgate” and “New Starz.” Shareholders of Lionsgate’s existing Class A voting common stock will receive shares of New Starz’s Class A voting common stock and shares of New Lionsgate’s voting common stock. Similarly, holders of Lionsgate’s existing Class B non-voting common stock will receive shares of New Starz’s Class B non-voting common stock and shares of New Lionsgate’s non-voting common stock, all on a pro rata basis.

It’s an exciting time for Lionsgate and Starz as they embark on this new chapter. Lionsgate acquired Starz for $4.4 billion in 2016, and now they’re ready to take their separate paths and continue to thrive in the ever-evolving entertainment industry.

Max Hensley

Max, a film journalist and screenwriter originally from Melbourne, Australia, brings a global perspective to his writing. Having studied film at RMIT University, he enjoys exploring the cultural impact of cinema and highlighting the unique storytelling approaches from diverse film industries around the world.

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