Lionsgate Increases Majority Stake In 3 Arts Entertainment
deadline.comEXCLUSIVE: Lionsgate Entertainment is in final negotiations to acquire an additional ownership stake in management and production company 3 Arts Entertainment, sources tell Deadline.
The exact size of the stake is unclear but it is understood to be significant. A rep for Lionsgate declined comment. In spring 2018, indie studio Lionsgate acquired a majority (just over 50%) stake in 3 Arts, with an option to buy more/the rest five years later.
The new deal, which is now being finalized after months of negotiations, ups Lionsgate’s investment in the leading management/production company in a major way without going for a full ownership.
At the time of the original 2018 investment, Lionsgate’s initial stake was valued in the $300M-$350M range. The prices of media assets like 3 Arts have gone up over the past five years, and the new acquisition followed a new valuation, a standard procedure, which I hear was higher than the one done for the original 2018 deal.
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