Lionsgate, Starz Get SEC Approval to Split and Form Two Public Companies
It’s the next step in the separation of the Starz cable channel/streaming service from the Lionsgate production house.
The effort by Lionsgate to spin off its TV and movie production studio from the cable channel/streaming service STARZ has taken its next step. According to The Hollywood Reporter, Lionsgate has received approval from the Securities and Exchange Commission to spin off its TV and movie studios in a Special Purpose Acquisition Company (SPAC), allowing it to continue the process of disentangling itself from STARZ and potentially attract new buyers.
- The Lionsgate TV and movie studios will merge with Screaming Eagle Acquisition Corp., with the deal likely to close in May.
- Lionsgate intends to be fully split from STARZ by the end of 2024.
- The change could mean the end of the STARZ streaming platform, which may see the rights to its TV and movie library depart with Lionsgate.
The process of Lionsgate’s split from STARZ first began nearly two years ago. In June of 2022, reports surfaced that Lionsgate was going to split into two companies, though at that time there was no clarity on whether it would sell the TV and movie studio segment of itself, or the cable channel/streaming bundle STARZ.
In December 2023, it was determined that the Lionsgate production houses would be the asset spun off for potential sale. In early March, reports circulated that Lionsgate would merge with Screaming Eagle, an SPAC that will allow it to operate as an independent company and potentially pursue other merger opportunities.
That step in the process looks likely to be completed by early May. An SEC filing made by Screaming Eagle and its sponsor Eagle Equity Partners said the registration statement for the proposed merger of Lionsgate with the SPAC has been declared effective, clearing the path for the deal to close. Screaming Eagle shareholders will meet on May 7 to discuss the merger.
“The parties anticipate that the business combination will close in early May, subject to satisfaction of the conditions to the closing of the business combination,” Screaming Eagle said in a statement.”
Will STARZ Be Shut Down as a Consequence of Split?
The split of STARZ from Lionsgate could leave the cable channel/streamer bereft of content. Lionsgate studios will own the rights to all TV shows and movies they produce for STARZ, and there’s a good chance that franchises like “John Wick” and “The Hunger Games” will make attractive assets for prospective buyers who want to acquire Lionsgate.
The futures of TV series like “Outlander” and the “Power” franchise are a bit more difficult to determine. Depending on how their broadcast and streaming rights agreements are laid out, they could remain with STARZ once the split is complete, or they could be folded into the Lionsgate catalog and taken with that company when it’s spun off.
Clarity on such questions will come with time, and it appears that only a short waiting period will be required. The splitting of STARZ from Lionsgate is proceeding at a steady pace, and now that the SEC has given its ascent Lionsgate will begin the process of merging its TV and movie studio with Screaming Eagle.
STARZ
STARZ offers a subscription video streaming service that gives access to content on the STARZ channel without the need of a cable subscription. With your subscription, you’ll get access to 7,500+ films and episodes, including all of their current originals like “Outlander,” The Serpent Queen,” “BMF,” and “Power.”