Lionsgate to Spin Out Studio in SPAC Deal

Lionsgate’s studio business, comprising its television studio and motion picture group segments, is being combined with Screaming Eagle Acquisition Corp. to launch Lionsgate Studios.

The SPAC deal positions the standalone Lionsgate Studios as a platform-agnostic, pure-play content company with a portfolio of franchise properties, including The Hunger Games, John Wick, The Twilight Saga and Ghosts, a film and television production and distribution business, a talent management and production company and a film and television library.

As a result of the transaction, 87.3 percent of the total shares of Lionsgate Studios are expected to continue to be held by Lionsgate, while Screaming Eagle public shareholders and founders and common equity financing investors are expected to own an aggregate of approximately 12.7 percent of the combined company.

The transaction values Lionsgate Studios at an enterprise value of approximately $4.6 billion.

Lionsgate Studios does not include the STARZ platform, which will continue to be wholly owned by Lionsgate.

“This transaction creates one of the world’s largest publicly-traded pure-play content platforms with the ability to deliver significant incremental value to all of our stakeholders,” said Lionsgate CEO Jon Feltheimer and Vice Chair Michael Burns.  “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,” said Screaming Eagle CEO Eli Baker.  “We believe this will be seen as one of the most innovative and value-creating transactions the market has seen in some time.”