Lionsgate Forms $4.6B Studio Giant with Screaming Eagle SPAC Merger

Lionsgate Entertainment Corp (NYSE: LGF-A) (NYSE: LGF-B) announced that it would merge its Studio Business, which includes its Television Studio, Motion Picture Group segments, and an extensive film and television library, with special purpose acquisition company (SPAC) Screaming Eagle Acquisition Corp SCRM to form Lionsgate Studios Corp. 

This move positions Lionsgate Studios as a platform-agnostic content company, holding a portfolio of franchises like The Hunger Games and John Wick. 

The deal, valuing Lionsgate Studios at approximately $4.6 billion, will result in Lionsgate retaining 87.3% of the shares while Screaming Eagle shareholders and investors will own about 12.7%.

The transaction excludes the STARZ platform and will likely generate around $350 million for Lionsgate, including $175 million from PIPE financing. 

The proceeds will enhance Lionsgate's balance sheet and support strategic initiatives, such as the upcoming acquisition of the eOne business.

Lionsgate Studios' common shares will trade separately from Lionsgate's Class A and Class B shares. 

The transaction, subject to regulatory approvals and shareholder consent, is anticipated to close in spring 2024. 

Price Action: SCRM shares traded higher by 0.66% at $10.63 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.