Lionsgate has announced that its studio business, comprising TV studio, Motion Picture Group segments and one of the world’s most valuable film and television libraries, will be combined with Screaming Eagle Acquisition Corp to launch Lionsgate Studios Corp.

Screaming Eagle is a publicly-traded company (in the United States) formed to merge with existing businesses.

The deal, according to a media statement issued from California by the company, positions the standalone Lionsgate Studios as a platform-agnostic, pure play content company with a deep portfolio of franchise properties including ‘The Hunger Games’, ‘John Wick’, ‘The Twilight Saga’ and ‘Ghosts, a robust film and television production and distribution business, a leading talent management and production company, and a world-class film and television library.

As a result of the transaction, 87.3 percent of the total shares of Lionsgate Studios are expected to continue to be held by Lionsgate, while Screaming Eagle public shareholders and founders and common equity financing investors are expected to own an aggregate of approximately 12.7 percent of the combined company.

The transaction values Lionsgate Studios at an enterprise value of approximately $4.6 billion.  Lionsgate Studios does not include the STARZ platform, which will continue to be wholly owned by Lionsgate.

In addition to establishing Lionsgate Studios as a standalone publicly-traded entity, the transaction is expected to deliver approximately $350 million of gross proceeds to Lionsgate, including $175 million in PIPE financing already committed by leading mutual funds and other investors, Lionsgate said in the statement.

Common shares of Lionsgate Studios will trade separately from Lionsgate’s Class A (LGF.A) and Class B (LGF.B) common shares as a single class of stock.  The transaction is subject to certain closing conditions, including regulatory approvals and approval from the shareholders and public warrant holders of Screaming Eagle, and is expected to close in the spring of 2024.

“This transaction creates one of the world’s largest publicly-traded pure play content platforms with the ability to deliver significant incremental value to all of our stakeholders,” said Lionsgate CEO Jon Feltheimer and Vice Chair Michael Burns in a joint statement.

“We are thrilled to be part of establishing Lionsgate Studios as one of the only pure play content companies in the public markets, which is well positioned to unlock value for both existing and new shareholders,” said Screaming Eagle CEO Eli Baker.

Lionsgate senior management will hold a call to discuss the transaction on January 4.

 Lionsgate, listed on the New York Stock Exchange, LGF.B) encompasses motion picture and television studio operations aligned with the STARZ premium global subscription platform to bring a unique and varied portfolio of entertainment to consumers around the world.  Lionsgate’s film, television, subscription and location-based entertainment businesses are backed by a 18,000-title library and a valuable collection of iconic film and television franchises.