Lionsgate has taken a significant step toward finalizing its long-anticipated separation from Starz, with an SEC filing formally outlining the plan. According to reports, the detailed S4 document that was submitted sets the stage for creating two distinct publicly traded companies, pending the Securities and Exchange Commission’s approval.
Once the filing is cleared and declared effective, Lionsgate will schedule a shareholder meeting to vote on the split, which has already received board approval. The company had targeted completing the transaction by the end of 2024 and appears on track, though there is a possibility it may slip into early 2025.
Under the proposal, a new entity called Lionsgate Studios will emerge, while the existing Lionsgate will be rebranded as Starz Entertainment. The leadership teams for both companies remain consistent with their current structures: Jon Feltheimer and Michael Burns will lead Lionsgate Studios, while Jeff Hirsch will continue as President and CEO of Starz.
One notable detail from the filing is the introduction of a 15-to-1 reverse stock split for Starz Entertainment. This means every 15 common shares will be consolidated into one, effectively reducing the number of outstanding shares and boosting the share price.
The split aligns with broader trends in the evolving media landscape, where companies are restructuring to navigate shifting market dynamics, particularly in linear television. Lionsgate emphasized that the move is intended “to enable the two companies to more effectively pursue their own distinct operating priorities and strategies and focus on strengthening their core businesses.”
The statement also noted the benefits of the split in allocating resources more effectively and presenting a clearer investment opportunity as separate “pure-play” entities — one as a content studio and the other as a platform company.
In a similar vein, Comcast recently announced plans to spin off its NBCUniversal cable networks into a new standalone public company. While Comcast’s move is not necessarily aimed at selling the business, it seeks to attract investments that may not align with the broader interests of its shareholders.
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