Lionsgate is now looking at spinning off its studio business — rather than kicking out the Starz premium network and streaming business.
The company, in an SEC filing Wednesday, said that “Despite the volatile market environment” Lionsgate remains “on a path to separating our Starz and studio businesses.” However, Lionsgate is increasingly focused on divesting the studio side of the house.
“As negotiations progress, we have increased our focus on the possibility of spinning our studio business, creating a number of financial and strategic benefits,” the company said in an SEC filing Wednesday. “In that regard, we are continuing productive negotiations with prospective strategic and financial partners on both sides of our business.”
Lionsgate did not identify the parties it’s involved in talks with.
Lionsgate’s disclosure about potentially spinning off its studio biz came as the company also announced that it is rebranding Starzplay, its international streaming service, has been rebranded as Lionsgate+. The rebranded Lionsgate+ will be available in 35 countries including the U.K. and Canada on Sept. 29. In the U.S., the name of the Starz streaming service will not change.
The company had previously announced that it was considering spinning off or selling Starz, which it acquired in 2016, as part of reducing debt. Among the suitors were Roku and private-equity firm Apollo Group, which had teamed up on a bid to acquire a minority stake in Starz.
On Lionsgate’s Q2 earnings call in May, CEO Jon Feltheimer said the media company was aiming to announce its plan for Starz by the end of the summer — which, of course, did not happen — with a potential transaction closing as early as Q1 2023.
In explaining the rationale for the rebranding from Starzplay to Lionsgate+, Starz president and CEO Jeffrey Hirsch said the change “brings a distinct and differentiated identity in an increasingly crowded international marketplace and builds on the brand equity in the Lionsgate name that our extensive research has proven is strong around the world.”
Even after the separation of Starz and Lionsgate’s studio business, Hirsch added, “the Lionsgate brand will continue to be valuable to the ongoing success of our international platform.”
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