Lions Gate Entertainment Corp. announced Wednesday its intention to spin off its Lionsgate Studios business, as well as a larger global rebranding of Starz. Starzplay was the current name of the streaming service. It will change to Lionsgate+ on Sept. 29.
According to an SEC filing Wednesday morning the entertainment company stated that “despite the volatile market environment, Lions Gate Entertainment Corp. remains on a path to separating our Starz and studio businesses. As negotiations progress, we have increased our focus on the possibility of spinning our studio business, creating a number of financial and strategic benefits.”
“In that regard, we are continuing productive negotiations with prospective strategic and financial partners on both sides of our business,”The filing went on. The filing did not include any names of potential partners.
Looking ahead, Lionsgate’s studio and streaming services are expected to operate separately but remain strategically aligned, the goal being to create two singular companies for investors to separately value assets of Starz and those of the studio.
Spinning off the production studio Lionsgate and keeping its Starz streaming operation is counter to what many expected as Lions Gate Entertainment Corp.’s next move. The parent company was expected to spin off the streaming service it bought in 2016 in order to reduce its debt and continue in content-making with its TV and film studios.
Starzplay was rebranded to Lionsgate+. Starz CEO Jeffrey Hirsch made the following statement. “Operating under LIONSGATE+ internationally brings a distinct and differentiated identity in an increasingly crowded international marketplace and builds on the brand equity in the Lionsgate name that our extensive research has proven is strong around the world. Even with the separation of STARZ and the Lionsgate studio business, the Lionsgate brand will continue to be valuable to the ongoing success of our international platform.”
Added President International Networks for StarzSuperna Kalle “Our commitment to deliver bold, curated stories where we push boundaries and defy expectations remains the same. We have built strong relationships with our viewers and look forward to continue providing them premium storytelling as LIONSGATE+.”
Lionsgate+ is available in over 35 countries, including Canada.
