Lionsgate Studios and Starz Announce New Company Names for Separation Steps
Lionsgate Studios and Starz are making some changes as they move towards separating. The latest development involves rebranding the companies as Starz Entertainment Corp. and Lionsgate Studios Corp.
To move this process along, Lionsgate filed a Form S-4 Registration Statement with the SEC. This form is a standard part of mergers and acquisitions, but in this case, it’s related to a stock exchange offer for STARZ, as it splits from Lionsgate Studios to become part of the Lionsgate company.
After this new setup, shareholders of Lionsgate will end up with shares in two different companies: the rebranded Starz Entertainment Corp. (LGEC) and the new version of Lionsgate Studios, now called Lionsgate Studios Corp. Both Lionsgate Entertainment Corp. shareholders and Lionsgate Studios shareholders will own the latter.
If the SEC gives the thumbs up to this filing, the company can then schedule a shareholder meeting to vote on the split. Since the board has already approved this separation, the process is expected to move quickly, with Lionsgate’s goal of completing everything by the end of 2024 looking promising.
This move towards separation has been in the works for over a year. Currently, Lionsgate Studios encompasses both the Motion Picture Group and the Television Studio segment. In May, Lionsgate Studios transitioned to trading as a single class of stock under the NASDAQ symbol LION.
Lionsgate CEO Jon Feltheimer and Vice Chair Michael Burns see this as a crucial step in strategically and financially preparing for the full separation of the Studio and STARZ businesses, aiming to provide more value to all stakeholders.
