Lionsgate's stock surges after deal to merge studios business with SPAC Screaming Eagle

Shares of Lions Gate Entertainment Corp. (LGF.B) (LGF.A) leapt 7.4% toward a 19-month high in premarket trading Friday, after the movie production and TV programming company announced a deal that would launch its studios business as a separately traded public company. Special purpose acquisition company Screaming Eagle Acquisition Corp. (SCRM) said it will merge with Lionsgate's studio business, which includes its TV studio and motion picture group but doesn't include the Starz platform, in deal that values Lionsgate Studios at $4.6 billion. Following the closing of the deal, which is expected to occur in the spring of 2024, Lionsgate will own 87.3% of the total shares of Lionsgate Studios Corp. while Screaming Eagle shareholders will own the remaining 12.7%. Lionsgate is expected to receive proceeds of $350 million from the merger. Lionsgate shares have soared 93.2% year to date, while the S&P 500 has rallied 23.6%.

-Tomi Kilgore

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12-22-23 0826ET

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