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Lionsgate to Make Studios Business a Separate Publicly Traded Company

Lionsgate plans to spin off its studio business, which will then combine with publicly traded Screaming Eagle Acquisition and launch as Lionsgate Studios Corp., the company said Friday. Lionsgate's studios business consists of a TV studio and motion picture group…

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segments, and includes film and TV libraries. Lionsgate said the Starz platform will remain with it and not go with Lionsgate Studios. Lionsgate will hold 87.3% of the combined company's shares, while Screaming Eagle shareholders and founders and financing investors will own the remaining 12.7%, according to a news release. The deal values Lionsgate Studios at about $4.6 billion. Lionsgate said it also will receive $350 million in gross proceeds as part of the transaction, which is expected to close in spring.