Lionsgate to Merge with SPAC, Separating from Starz in $4.6 Billion Deal
The deal, still subject to regulatory and shareholder approval, is expected to raise approximately $350 million for Lionsgate and is slated to close in spring 2024.
- Lionsgate announced it will merge with SPAC Screaming Eagle Acquisition Corp. to create Lionsgate Studios, separating it from Starz TV and valuing the studio at $4.6 billion.
- The existing Lionsgate company will retain Starz and still hold 87.3% of Lionsgate Studios shares, with 12.7% owned by founders, shareholders and investors of Screaming Eagle.
- The deal is expected to raise approximately $350 million for Lionsgate, including $175 million in already-committed PIPE (private investment in public equity) financing.
- The transaction is still subject to regulatory and shareholder approval and is expected to close in the spring of 2024.
- Lionsgate has been exploring alternatives for Starz, which it acquired for $4.4 billion in 2016, since as far back as 2019.
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