Lionsgate has furnished more details to investors ahead of its planned split into two publicly traded entities — one centered on film and TV production and the other on media networks, principally Starz.The company filed a public Form 10 with the SEC containing a proxy statement outlining the assets and highlights of the separation process. Once the regulatory agency has signed off on the details in the form, a special shareholder meeting will be scheduled for the final vote to be taken.The split has been under consideration for several months and its exact timing depends on a few factors, though management hopes to have it completed in the coming months. The notion of restructuring the company via one or more maneuvers, including spinoffs and partnerships with investors, has been explored by execs since November 2021. The past year-plus has been a rollercoaster for all media companies in terms of industry flux and the larger economy, with the deal market stalling due to factors like spiking inflation.“We remain excited by the prospect of separating Lionsgate and Starz into standalone companies with strong financial foundations that will allow each company to pursue its own distinct strategy while offering investors the opportunity to own both a pure-play publicly traded content studio and a premium subscription platform,” Lionsgate CEO Jon Feltheimer said in a press release after the Form 10 filing.The management teams and boards of both companies are expected to be largely the same after the split as they are under the unified entity.The filing refers to the two new companies as “New Lionsgate” and “New Starz.” After the separation takes effect, it says, each holder of shares of Lionsgate’s existing Class A voting common stock will get shares of a new Class A voting common stock of New Starz and shares of New Lionsgate’s voting common stock. Each holder of shares of Lionsgate’s existing Class B non-voting common stock will get shares of new Class B non-voting common stock of New Starz and shares of New Lionsgate’s non-voting common stock, in each case on a pro rata basis.Lionsgate acquired Starz for $4.4 billion in 2016.
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