Lionsgate recently revealed details about its plan to split into two publicly traded entities, one specializing in film and TV production and the other on media networks. “We remain excited by the prospect of separating Lionsgate and Starz into standalone companies with strong financial foundations that will allow each company to pursue its own distinct strategy while offering investors the opportunity to own both a pure-play publicly traded content studio and a premium subscription platform,” Lionsgate CEO Jon Feltheimer said in a press release after the Form 10 filing.
The terms were noted in a public Form 10 filed by the company, including a SEC containing a proxy statement that details the assets and highlights of the separation process. A special shareholder meeting is expected to take place after the regulatory agency has signed off on the details in the form, for the final vote to be collected. Executives hope to carry out the split within these upcoming months.
According to the filing, the new companies will go by the name, “New Lionsgate” and “New Starz.” The film and TV production division will cover media networks, mainly Starz, which was acquired by Lionsgate for $4.4 billion in 2016. The management teams and boards of both companies are expected to remain the same for the most part under a unified entity.
Following the separation, each holder of shares of Lionsgate’s existing Class A voting common stock will receive shares of a new Class A voting common stock of New Starz and shares of New Lionsgate’s voting common stock. Each holder of shares of Lionsgate’s existing Class B non-voting common stock will receive shares of new Class B non-voting common stock of New Starz and shares of New Lionsgate’s non-voting common stock on a pro rata basis. The idea for the split has been considered for months, with talks of restructuring dating back to November 2021.