Shareholders of Lions Gate Entertainment Corp., the company behind The Hunger Games and John Wick movies, approved a plan to fully separate the film and TV studio from the Starz pay-TV service, according to a person with knowledge of the matter.
Shares of Lionsgate Studios Corp., the film and TV production arm, will be distributed to investors at a later date, according to the person, who asked not to be identified since the vote hasn’t been announced.
The breakup, years in the making, unwinds Lions Gate’s $4.4 billion acquisition of Starz in 2016. Management has said the two businesses will be more valuable as independent companies.
At present, the largest owners of Lions Gate voting shares are Chairman Mark Rachesky’s MHR Fund Management with a 24% stake and former Treasury Secretary Steven Mnuchin’s Liberty 77 Capital with 17%, according to data compiled by Bloomberg.
Following the split, MHR will have a stake of approximately 13% in Lionsgate Studios and a 15% stake in the Starz business, according to the person. Liberty 77 will have a stake just under 10% in Lionsgate and 11% in Starz.
Shares of Lionsgate Studios, created using a special purpose acquisition company, rose 2.9% to $6.71 in New York. They began trading in May 2024 at around $10. Lions Gate Entertainment gained 2.5% to $8.06.
{{/usCountry}}Shares of Lionsgate Studios, created using a special purpose acquisition company, rose 2.9% to $6.71 in New York. They began trading in May 2024 at around $10. Lions Gate Entertainment gained 2.5% to $8.06.
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