Lionsgate Studios began trading as a single class of stock under the NASDAQ ticker symbol LION on Tuesday. This news comes as the company continues its split from the premium cable network STARZ.
Lionsgate Studios encompasses both Lionsgate’s Motion Picture Group and the Television Studio segment as well as the company’s 20,000-plus title film and television library. This transaction is a major step in Lionsgate’s plan to fully separate its studio and STARZ businesses. Lionsgate Studios is currently valued at an enterprise value of $4.6 billion.
“This transaction reaffirms our longstanding belief in the value of premium content by enabling us to launch Lionsgate Studios as one of the world’s leading standalone, pure play, publicly-traded content companies,” Lionsgate CEO Jon Feltheimer and Vice Chair Michael Burns said in a joint statement. “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 Studios previously raised $350 million in proceeds from a group of leading investors, which allowed the transaction to proceed. It was enabled by a business combination with Screaming Eagle Acquisition Corp., a publicly-traded special purpose acquisition company that focuses on mergers, asset acquisition or similar business
Lionsgate is expected to hold 87.2% of the total shares of Lionsgate Studios. Screaming Eagle public shareholders and founders as well as common equity investors are expected to own an aggregate of approximately 12.8% of the combined company. The STARZ premium subscription platform is not part of Lionsgate Studios and will continue to be wholly owned by Lionsgate.
In its new form, Lionsgate Studios will be a platform-agnostic content company. It will include the brand’s franchise properties such as “The Hunger Games,” “John Wick,” “The Twilight Saga,” “Now You See Me” and “Saw” on the film side and “Mad Men,” “Orange Is the New Back,” “Ghosts,” “The Rookie” and the “Power” universe on the television side.
