Lionsgate took another step in its quest to separate its studio division from STARZ.
The studio filed a Form S-4 Registration Statement on Wednesday with the Securities and Exchange Commission (SEC). A Form S-4 is essential when it comes mergers or acquisitions. But in the case of STARZ, which is splitting from Lionsgate Studios to be owned by Lionsgate the company, the form has more to do with a stock exchange offer.
As part of this new arrangement, pre-transaction shareholders of Lionsgate will hold shares of two different companies: the rebranded Starz Entertainment Corp. (LGEC) and the new version of Lionsgate Studios, which will be named Lionsgate Studios Corp. The latter will be owned by both Lionsgate Entertainment Corp. shareholders and Lionsgate Studios shareholders.
If the SEC approves this filing, the company will be able to set a date for its shareholder meeting to vote on the separation. As this split has already been approved by the board, it’s believed that this process will happen quickly. By and large, Lionsgate’s plan to complete this move by the end of 2024 seems to be on track.
This spilt has been in the works for over a year now. Currently, Lionsgate Studios includes both Lionsgate’s Motion Picture Group and the Television Studio segment. Back in May, Lionsgate Studios began trading as a single class of stock under the NASDAQ ticker symbol LION.
“It is an important step forward in the process of preparing strategically and financially for the full separation of our Studio and STARZ businesses that is designed to deliver incremental value to all of our stakeholders,” Lionsgate CEO Jon Feltheimer and Vice Chair Michael Burns said in a joint statement at the time about the NASDAQ change.
