Lionsgate Says Studio To Split From Starz In April

Lionsgate Vice Chair Michael Burns said the company is set to split in two by year end with a first step in early April as the studio merges with a SPAC and starts to trade separately from Starz on the Nasdaq under the stock symbol LION.

For tax reasons, the parent company will retain 87% of the studio stock at first, along with all of Starz, and the plan is fully separate the studio from Starz by the end of 2024, he told investors at the Morgan Stanley media conference.

The operation has been pending for a few years and is designed to unlock value as the hasn’t reflected the full value of all the company’s assets for some time. Both companies would be digestible acquisition targets in a consolidating media landscape.  

“Ultimately, I don’t have a crystal ball, but I do believe that there are very interesting opportunities with Starz in the consolidation of independent channels. And Lionsgate, with the library and TV and film business, will be a very interesting strategic alliance partner — that is euphemistically put — with other players.”