Lionsgate Shareholders Approve Breakup Plans, Bloomberg Reports.

Lionsgate shareholders have approved the company's plans to break up into two separate entities. The deal involves separating the film and television production business from the studio's library of films and TV shows. The move is expected to create two separate companies, with the film and TV production business trading as Lionsgate Entertainment and the library of content trading as Lionsgate Media. The deal is seen as a strategic move to unlock value and create more opportunities for growth.

Lionsgate Entertainment Corp. shareholders have approved the company's plans to separate into two distinct entities, according to reports from TheWrap and Investing.com. The strategic move aims to streamline operations and enhance competitive positioning in the rapidly evolving media landscape dominated by streaming services. The approved plan involves splitting the film and television production business from the studio's library of films and TV shows.

The film and TV production business will trade under the name Lionsgate Entertainment, while the library of content will trade as Lionsgate Media. The separation is expected to create more strategic flexibility and unlock value for both entities. Lionsgate will continue to benefit from collaborations with Starz, which will maintain its pay-TV network status and explore distribution and bundling opportunities.

The separation comes after a series of delays, including the Hollywood strikes and regulatory approvals, and follows Lionsgate's acquisition of eOne in 2016. The newly formed Lionsgate Studios will encompass the company's Motion Picture Group and Television Studio operations, along with a vast library boasting over 20,000 film and television titles. The separation is seen as a proactive approach to addressing the challenges and harnessing the opportunities presented by the new media environment.

Following the separation, the newly named Starz Entertainment Corp. will trade under the ticker symbol STRZ on the NASDAQ in May. Lionsgate shares are down 27% in the past year and 6% year-to-date, but are up 7.4% in the past month.

This strategic realignment is part of a larger industry trend where companies are reevaluating their structures to better align with the shift towards streaming platforms. By separating from Starz, the studio division can potentially capitalize on opportunities for growth and partnerships in the film and television production space.

The completion of the split will result in two distinct publicly traded companies, each with its own strategic priorities and operational focus. Shareholders and potential investors are now watching closely as Lionsgate moves forward with its plans to become more agile and responsive to market demands.

References:
[1] https://www.thewrap.com/lionsgate-starz-split-shareholders-approved/
[2] https://www.investing.com/news/stock-market-news/lionsgate-plan-to-split-studio-and-starz-approved-by-shareholders--report-93CH-4000098
[3] https://seekingalpha.com/news/4434295-lions-gate-shareholders-give-nod-to-split-into-two-firms

Ask Aime: How will the Lionsgate split affect Starz?

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