Lionsgate Resets Timeline To Split Starz And Studio
deadline.comLionsgate this week has started the formalities around spinning off its studio from Starz and anticipates filing the deal with the SEC in March, and completing the separation of the businesses by the end of its fiscal second quarter next September, vice chair Michael Burns said today, officially resetting the timeline for a deal Wall Street’s been anticipating for the better part of a year.
The transaction is meant to unlock value for the stock. “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,” Burns told the RBC media conference. Lionsgate initially announced last fall it was exploring strategic options that included a potential spinoff of Starz, with a deal to be announced by late summer to close in early spring.
That deadline passed and the entity more likely to be spun off became the studio, given investor interest in that business. The company is also committed to reducing debt.
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