Lionsgate shareholders have approved the separation of the studio business and Starz, Deadline has learned, clearing the way for the transaction to close after nearly three years in the works.
Shareholders voted today to approve the separation at meetings in Vancouver, British Columbia where the company is headquartered at a delayed annual general and special meeting of Lionsgate, and at a special meeting of Lionsgate Studios — the new company that’s been spun out. The vote was a key hurdle ahead of a split where they will trade fully independently as Starz (stock symbol STRZ) on the New York Stock Exchange, and Lionsgate Studios (LION) on the Nasdaq.
Separation is anticipated in early May with trading to start the following day.
Other proxy resolutions including the slate of Board of Director nominees and executive compensation were also approved by a majority of stockholders. The company will file a certified final vote tally with the SEC later today.
Lionsgate announced plans to split several years ago and originally considered spinning out Starz before changing the structure and ultimately merging Lionsgate Studios with a SPAC (special purpose acquisition vehicle).
The reason behind the split, executives said, is to unlock shareholders value as the stock price of the combined company didn’t reflect the true value of its assets — which would change with each becoming a pure play. As smaller companies either or both are seen as more likely acquisition targets if M&A picks up.
The pandemic, Hollywood strikes and acquisition of eOne slowed the process. There was also significant pushback from bondholders.
Last month, CFO James Barge called Starz a “totally misunderstood business.”
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