Lionsgate CFO James Barge said the dual Hollywood strikes are hurting revenue by roughly $30 million per quarter. While the damage is spread across several business units, the exec said management and production subsidiary 3 Arts and other television operations would be the main affected areas, at least for the near term.“In our assumptions, we have built in an assumption that the strike goes through the September quarter,” Barge said during the company’s quarterly call with Wall Street analysts. “That was about a $30 million impact. As you can imagine, it primarily impacts our talent management business, 3 Arts, and television in that context. So, we factored that in. If it goes longer, it’s a similar impact, probably, as it rolls quarter to quarter. If it does, we’re hopeful that things get resolved and we’re back to work in the mid-fall.”The WGA strike has just marked its 100th day, with SAG-AFTRA’s walkout a month ago only adding to Hollywood’s pain. No talks are currently scheduled between either guild and the AMPTP.Barge offered the comments after Lionsgate released solid earnings, with results ahead of Street expectations. He noted on the call that the company has reaffirmed its full-year financial guidance despite the strike hit.Lionsgate took a majority stake in 3 Arts in 2018 in a deal valuing the management and production firm at more than $300 million. Four years later, the company bought a minority position in London- and LA-based 42, another management/production outfit, and formed a three-way relationship with 3 Arts aimed at maximizing TV opportunities.Lionsgate’s investment in 3 Arts has already led to partnerships on series including Mythic Quest and Manhunt for Apple+, Julia for HBO Max and The Serpent Queen for Starz.
© 2023 Deadline Hollywood.