Lionsgate and Steven Paul's SP Media Launch Joint Venture: SP Media Makes Significant Capital Investment, Lionsgate Holds Majority
Lionsgate (NYSE: LION) and SP Media, led by producer, financier and entrepreneur Steven Paul, announced on October 26 the formation of a joint venture through which SP Media will make a significant capital investment to co-invest in new ventures that expand Lionsgate's global platform, while extending resources toward the continuing diversification of 3 Arts Entertainment and other Lionsgate businesses. SP Media will also produce independent feature films that Lionsgate will distribute. Financial terms were not disclosed; TheWrap, citing a person familiar with the matter, put the investment at around $100 million.
The joint venture will be majority owned, controlled and managed by Lionsgate. Lionsgate said the deal lets it keep scaling its content platform with a new source of independent feature films, while SP Media partners with one of the world's leading independent studios and gains a world-class distributor for its films.
Steven Paul, chairman, founder and CEO of SP Media Group and Crystal Sky Pictures, has shepherded commercial titles including the Baby Geniuses franchise, Ghost Rider and Ghost Rider: Spirit of Vengeance starring Nicolas Cage, Ghost in the Shell starring Scarlett Johansson, and the Lionsgate-distributed Rambo: Last Blood.
"Steven is a savvy and experienced entrepreneur who has a longstanding relationship with our studio, and his investment will help drive the continued growth of these businesses," said Lionsgate CEO Jon Feltheimer. "Lionsgate is one of the most dynamic and entrepreneurial content studios in the media space today," Paul said. "I'm delighted to build on my longstanding relationship with Jon Feltheimer and the Lionsgate leadership team as we grow our businesses together in an industry environment filled with opportunity."
The deal was negotiated for Lionsgate by COO Brian Goldsmith, EVP and General Counsel Bruce Tobey and Senior VP of Corporate Development Suzy Felfeli, and for SP Media by SP Media Group President and COO Scott Karol. Moelis served as financial advisor to Lionsgate and Lazard to SP Media; Paul Hastings LLP represented SP Media.
The venture was announced amid studio sale chatter. Bloomberg has reported that Legendary Entertainment has submitted a bid valuing Lionsgate at about $3.5 billion including roughly $1.9 billion of debt, now in due diligence — a figure neither company has confirmed — while Deadline, citing sources, says Lionsgate has not launched a formal sale process. Lionsgate reports earnings on November 5.
Source: GSM America
Source: GSM · USA (original Chinese edition)
Photo: 图：狮门影业公司标志。公共领域，经 Wikimedia Commons。 / The Lionsgate logo. Public domain, via Wikimedia Commons.
