As the upper echelons of Lionsgate decide what kind of spin-off or sale to consider for its premium cable brand Starz, the company on Friday revealed the theater’s price and stock deal it reached in 2021.
Lionsgate has agreed to pay $191.4 million for 200 films and an 18.9% preferred interest in Gary Barber’s production company Spyglass Media Company, the conglomerate revealed in its 10-K filing with the Securities and Exchange Commission on Thursday. -fair. Lionsgate said it paid $171.4 million last year, with $10 million in installments due in 2022 and 2023.
Lionsgate, led by John Feltheimer, first revealed the agreement for a stake in Spyglass, managed by former MGM boss Barber, in July 2021. As part of the agreement, Lionsgate acquired 200 titles from Spyglass, including paddington, Fruitvale Station, Exodus of the Kings s Silver linings PlaybookAlso the credits of Quentin Tarantino Inglourious Basterds, django unleashed s eight hateful. (These movies were Weinstein Co. titles that Spyglass took over in 2018 after the company filed for bankruptcy.) Lionsgate has added these features to its 17,000-title movie and TV library, which has grossed $749 million in recent years. twelve months.
Spyglass Media also co-produced 2022 crying, which raised $140 million worldwide with Paramount and collaborated with the studio on the next installment of the franchise. Other Spyglass backers include Warner Bros. and exhibition giant Cineworld.
Lionsgate, in its Aug. 4 quarterly earnings release, had a net loss attributable to shareholders of $119 million, down $45 million from the same period last year, with total revenue falling to $119 million. $893.9 million. Since January 3, the first day of trading this year, the company’s shares have dropped 39 percent.
On the earnings call, CEO Feltheimer was asked if Lionsgate’s library was worth about $3-4 billion. “We fill the pipeline with a lot of content, the more updates we get, especially in the TV business, the more valuable the content is,” Feltheimer responded, noting that much of the library is scripted and premium, which has buyer demand.
“When you see a lot of the big streamers obviously moving into new territories, they need a lot of content. And frankly, it’s expensive to create new content,” the executive said, suggesting that buyers in a “recession environment” would look to license their movies and TV shows because it’s a cheaper way to fill their coffers.
Lionsgate executives also confirmed on Aug. 4 that the company is still listening to offers for Starz, which has 26.3 million global streaming subscribers, as well as “broader” offers. “The framework we’re looking at has become broader,” said Lionsgate Vice President Michael Burns. Even with the split, some of our potential partners have expressed interest in both the studio and Starz and, as always, our priority is to create significant shareholder value.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
