Lionsgate To Launch New Publicly Traded Company In $4.6 Bln Deal

(RTTNews) - On Friday, Lions Gate Entertainment Corp. (LGF-A) announced that it will merge its Studio Business with Screaming Eagle Acquisition Corp. to create a new standalone publicly traded company entity called Lionsgate Studios Corp. in a deal valued at about $4.6 billion.

The Studio Business includes the Television Studio, Motion Picture Group segments, and film and television libraries.

Under the terms of the transaction, Lionsgate will retain a controlling interest of 87.3% in Lionsgate Studios, while Screaming Eagle will own 12.7%.

The transaction is expected to deliver approximately $350 million of gross proceeds to Lionsgate, including $175 million in PIPE financing.

The company expects the transaction to close in the spring of 2024.