We May Have a Timeline for the Lionsgate/Starz Split, Finally
The pending spin-off of Starz assets from the Lionsgate brand may feel like it’s been in the news forever, especially as we see a flurry of preparatory licensing and deal-making between the two, but there does seem to be a date in sight. Finally! To share the news, we have Brandon Blake, entertainment attorney at Blake & Wang P.A.
Spring (at the Earliest)
While the pending deal is
still in regulatory review, Lionsgate CEO Jon Felthimer announced last week
that they still believe they are on track to see the full separation in spring
this year. It may even be as early as April.
There is a small delay
currently, as the proxy needs to be updated with last quarter’s financials,
which inevitably adds a few weeks to the process. However, they are planning
their shareholder meeting for late April, with the separation due shortly
thereafter.
A Long Goodbye
The Starz/Lionsgate split
may seem like it has been in the news forever. However, most of these delays
have been simple regulatory processes with the SEC, and their approval is the
last piece of the puzzle. After the formalities of the shareholder meeting,
which must take place within 30 days of the SEC ruling, the split will be
immediate.
On the plus side, this slow
and steady run-up to the pending split has given both sides ample time to
prepare, as we’ve seen from a flurry of “in-house” deal-making between the two
brands in recent months.
Lionsgate also recently
reported their third-quarter earnings, which came in well above forecasts from
Wall Street and saw their net losses close quite dramatically despite a tough
second half to 2024.
With their library assets
performing strongly for them, and several notable successes in the mid-budget
film range theatrically, Lionsgate is looking as strong as ever, and Starz
appears to be carving its own solid niche as well, with commendable OTT
subscriber growth.
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