In a highly anticipated move, Lionsgate shareholders have voted overwhelmingly in favor of the separation of the company’s studio business and the Starz subscription business. The decision was made at Lionsgate’s annual shareholder meeting held on April 23. Along with the separation, all other proxy resolutions, including the slate of board of director nominees and executive compensation, were also approved during the meeting. The certified vote totals are expected to be detailed in an SEC filing later on Wednesday.
The transaction to separate Lionsgate Studios and Starz is set to close in early May. As part of the plan, Starz will be under the leadership of current CEO Jeff Hirsch and will trade under the stock symbol STRZ, while Lionsgate Studios will trade under the symbol LION.
The decision to split the studio business from Starz has been in the works for years, with the company initially expecting the transaction to be completed in early 2023. Lionsgate acquired Starz, a premium cable network and streamer, in 2016 for $4.4 billion.
During the announcement of first quarter 2025 earnings, Lionsgate CEO Jon Feltheimer expressed confidence in the separation, highlighting the record performance from the company’s library and the profitability of its Motion Picture Group. The transaction is expected to create one of the world’s largest independent pure-play content platforms.
In January, Lionsgate extended its multiyear theatrical output deal with Starz, ensuring exclusive first pay TV and SVOD window rights to the studio’s films. The new deal extension also allows the theatrical films to appear on Starz on an accelerated basis closer to their initial theatrical release.
Last year, the company’s studio business merged with Screaming Eagle Acquisition Corp., a special-purpose acquisition company (SPAC), becoming a separately traded entity. With the separation of studios and Starz, current Lionsgate shareholders will receive shares in each of Lionsgate Studios and Starz.
The future looks bright for both entities as they embark on their individual journeys following the separation. The move is expected to bring new opportunities and growth for Lionsgate Studios and Starz, solidifying their positions in the entertainment industry.
