Lionsgate has now formally announced more details around its plan to split into two public entities, one returning to its core TV/film production business and one allowing media network activity centered on Starz, which it acquired for $4.4B in 2016. Blake & Wang P.A’s Brandon Blake, our entertainment attorney and industry expert, unveils what we know.
Key Aspects of the Separation
The company has now filed their public Form 10 with the SEC, detailing how the separation process (and division of assets) will progress. First, the plan will be scrutinized by the regulatory agency. Once they sign it off, it will head to a special meeting of shareholders for final votes.
While it’s clear they want to get the split underway as fast as possible, preferably in the next few months, the timing is still up for grabs. Lionsgate Execs have been plotting the split since November 2021, however. It’s currently expected that the board and management teams for both companies will remain mostly the same.
Details We Have
The new companies as outlined in the filing are ‘New Starz’ and ‘New Lionsgate’, very likely placeholders at this point. For those holding Lionsgate’s current Class A voting common stock, they will receive similar shares in both entities. The Class B (non-voting) stock will likewise be prorated based on existing share numbers.
It’s not much, but it is considerably more detailed than we’ve had from them to date. Of course, this has not been the easiest period to explore any kind of major company restructuring (just look at the many trials of Warner Bros Discovery). With flux in the industry and the economy both, and inflation causing more knock-on economic issues, it’s sure to be a tricky split. But finally, it seems like a split it will be.
