Lionsgate is moving forward with its plans to separate the studio business from Starz, submitting a draft registration of the proposed spinoff — of the studio — with SEC.The filing was submitted confidentially, so there are no details. But Lionsgate said it expects the spin-off to be completed “on previously communicated timelines, subject to market and other conditions.” That means the quarter ending in September. Details of the spin will likely become public within the next few months. The company had said previously it intended to file is plans with the SEC in March, so today’s news is in line.Wall Street has been anticipating the transaction for over a year. It’s meant to unlock value for the stock, which had been lagging, along with the rest of media. This year, Lionsgate shares are among the sector’s best performers, having doubled since Jan. but still down from its 52-week high near $17.“When you have two very different businesses, it’s tough to put a blended multiple on that, trying to show shareholders the value of both sides of the business. A separation is the cleanest way to do that,” Vice Chair Michael Burns said at a media conference last fall.A stand-alone Starz media group would have its own currency, meaning shares that it can use “to get bigger, or become part of something bigger,” Starz CEO Jeffrey Hirsch said then. “Do I believe we can continue to be successful at the size we are?” Yes, he said, “but it’s a tough environment out there.”Ditto for the studio and its circa 18,000-title library assembled by Lionsgate CEO Jon Feltheimer and Burns over the years. Post spin, Lionsgate will be one of the only pure-play, publicly traded content companies at a time when content is in high demand.The shares rose 5.2% today to close at $11.07. They are down 0.6% in after-hours trading.
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