Lionsgate Will Split Starz Off into Its Own Company Next Month as Cord Cutting Grows





Late last year Lionsgate said it will merge its studio business, which includes its television studio and motion picture group, with Screaming Eagle Acquisition Corp as the company splits the studio division with Starz. With this change, Starz, the cable TV network, will be spun off into its own company and a new company, Lionsgate Studios, will be formed.

After these two new companies are realized in April, Lionsgate will keep 87.3% of the total shares of Lionsgate Studios and the Starz platform. Screaming Eagle public shareholders, founders, and investors will own 12.7% of the combined company. Lionsgate Studios is valued at $4.6 billion.

“This transaction creates one of the world’s largest publicly traded pure play content platforms with the ability to deliver significant incremental value to all of our stakeholders,” said Jon Feltheimer, chief executive officer at Lionsgate said in a statement when this was announced. “Coupled with the acquisition of the eOne platform scheduled to close next week… we’ve put together all of the pieces for a thriving standalone content company with a strong financial growth trajectory.”

Lionsgate has been planning to separate the studio and Starz for nearly two years. The company decided to wait until after it closed the acquisition of eOne from Hasbro to create the standalone studio, which will be announced next week. 

This move allows Lionsgate Studios to be separated from any liabilities from its cable TV network Starz.

“We are thrilled to be part of establishing Lionsgate Studios as one of the only pure play content companies in the public markets, which is well positioned to unlock value for both existing and new shareholders,” said Eli Baker, chief executive officer for Screaming Eagle. “We believe this will be seen as one of the most innovative and value creating transactions the market has seen in some time.”

An exact date for the April split has not been announced.

Please follow us on Facebook and for more news, tips, and reviews. Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.

Disclaimer: To address the growing use of ad blockers we now use affiliate links to sites like, streaming services, and others. Affiliate links help sites like Cord Cutters News, stay open. Affiliate links cost you nothing but help me support my family. We do not allow paid reviews on this site. As an Amazon Associate I earn from qualifying purchases.

Subscribe to Our Newsletter

* indicates required

Please select all the ways you would like to hear from :

You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit our website.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp’s privacy practices here.