Lionsgate Shareholders Weigh in on Looming Split from Starz

 

Lionsgate Shareholders Weigh in on Looming Split from Starz

As we approach the final formalities in the separation between Lionsgate and its Starz arm, we’ve finally seen regulatory processes close and the split head to shareholders for a final vote. With further details, we have entertainment lawyer Los Angeles, Brandon Blake, at Blake & Wang P.A.

 


                                                                    Brandon Blake

Overwhelming Investor Support

During a special shareholders meeting last Wednesday, Lionsgate shareholders gave their overwhelming support to the planned split between the two entities. This will see Lionsgate rebrand as Lionsgate Studios Corp, and Starz reformed as Starz Entertainment Corp. Other necessary proxy resolutions, including the new board of director nominees and executive compensation, also received strong approval and a majority vote.

Next Processes

These vote tallies were added to the SEC filing for Lionsgate last Thursday. 72.5M of the Class A shares voted in favor (with only 128,587 against). In Class B shares, 125.9M voted yes, with 922,864 against the split. As the proposal required a two-third majority, it passed with ease. This will also see Lionsgate shift from Class A and B shares to a single class structure, hoping to boost the stock’s liquidity.

Once final steps are complete, Lionsgate will trade on the NY Stock Exchange under LION, while Starz is headed to NASDAQ under STRZ. Lionsgate has already spun off its film and TV studios as a Special Purpose Acquisition Company in preparation for the formal split.

Once the separation is finalized, investors will be able to value Starz and Lionsgate’s studio assets separately, leaving both entities more agile and better able to capitalize on their relevant strengths and market space. This could work well for both, especially as we see the ongoing media contraction, financial market uncertainty, and a shifting entertainment landscape. With a seriously compelling library of assets, Lionsgate, at least, will be well positioned for success.

 

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