Lionsgate announced that its television and motion picture studios will become a publicly traded company in a $4.6 billion deal.
The transaction, separating the studios from Lionsgate’s Starz unit, includes merging the studios with a special purpose acquisition company, Screaming Eagle Acquisition Corp., and is expected to raise $350 million for Lionsgate.
The proceeds will strengthen Lionsgate’s balance sheet and help it pay for the acquisition of eOne from Hasbro.
“This transaction creates one of the world's largest publicly traded pure-play content platforms with the ability to deliver significant incremental value to all of our stakeholders,“ Lionsgate CEO Jon Feltheimer and vice chair Michael Burns said. “Coupled with the acquisition of the eOne platform scheduled to close next week, the expansion of our partnership with 3 Arts and the strong performance of our content slates, we've put together all of the pieces for a thriving standalone content company with a strong financial growth trajectory.”
Lionsgate Studios becomes one of the largest independent pure-play content companies, with franchises including The Hunger Games, John Wick, The Twilight Saga and Ghosts.
As a result of the transaction, 87.3% of the total shares of Lionsgate Studios are expected to continue to be held by Lionsgate, while Screaming Eagle public shareholders and founders and common equity financing investors are expected to own an aggregate of approximately 12.7% of the combined company.
“We are thrilled to be part of establishing Lionsgate Studios as one of the only pure-play content companies in the public markets, which is well positioned to unlock value for both existing and new shareholders,” Screaming Eagle CEO Eli Baker said. “We believe this will be seen as one of the most innovative and value-creating transactions the market has seen in some time.”
