Lionsgate reveals details of Starz split, with planned formation of two companies

Outlander

Lionsgate in the US has revealed further details about its plans to separate its studio business and Starz to create two publicly traded companies.

The company made an SEC filing in which it revealed that Lionsgate’s film and TV studio would become a separate company, while its media networks assets, primarily encompassing the pay-TV and streaming operations of Outlander and Power Book network  Starz, would remain as part of the existing firm.

The two companies are referred to New Lionsgate and New Starz in the filing. The full 500-page document details the company’s assets and separation plans, though Lionsgate’s board of directors and shareholders are still to approve the split.

Lionsgate’s plans to sell or spin off Starz were first revealed in late 2021, barely five years since the studio acquired the company for $4.4bn, though no deal has come to fruition in the intervening months.

“We remain excited by the prospect of separating Lionsgate and Starz into standalone companies with strong financial foundations that will allow each company to pursue its own distinct strategy while offering investors the opportunity to own both a pure-play publicly traded content studio and a premium subscription platform,” said Lionsgate CEO Jon Feltheimer in a statement after the filing.