Lionsgate, a global content platform, has launched Lionsgate Studios as one of the world’s largest standalone pure play, publicly-traded content companies. It will trade as a single class of stock under the NASDAQ ticker symbol LION.
According to the official statement, a transaction raised $350 million in proceeds from a group of investors enabling a business combination with Screaming Eagle Acquisition Corp. This transaction enabled Lionsgate to establish its Studio as a separate business. Now Lionsgate Studios is an enterprise with the value of $4.6 billion.
Lionsgate CEO Jon Feltheimer and Vice Chair Michael Burns, said the transaction affirms their longstanding belief in the value of premium content. It enabled the organization to launch Lionsgate Studios as one of the world’s leading standalone, pure play, publicly-traded content companies. “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.”
Eli Baker, Screaming Eagle CEO, expressed thrill to be part of creating a company positioned in the sweet spot of the entertainment content business. “At launch, Lionsgate Studio is one of the largest standalone pure play content companies in the world, well-positioned to deliver value to new and existing shareholders through an innovative and creative transaction.”
Around 87.2% of the total shares of Lionsgate Studios are expected to be held by Lionsgate, while former Screaming Eagle public shareholders and founders, and common equity investors are expected to own an aggregate of about 12.8% of the combined company. It should be noted that Lionsgate Studios does not include the STARZ premium subscription platform – it will remain a wholly owned by Lionsgate.
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