Lionsgate Forms $4.6B Studio Giant with Screaming Eagle SPAC Merger
Portfolio Pulse from Anusuya Lahiri
Lionsgate is merging its Studio Business with Screaming Eagle Acquisition Corp (SCRM) to create Lionsgate Studios Corp, valued at $4.6 billion. Lionsgate will retain 87.3% ownership, while Screaming Eagle shareholders will own 12.7%. The deal excludes STARZ and is expected to generate $350 million for Lionsgate, aiding in the acquisition of eOne. The transaction is set to close in spring 2024, pending approvals. SCRM shares saw a slight increase of 0.66% to $10.63.
December 22, 2023 | 2:39 pm
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Screaming Eagle Acquisition Corp (SCRM) is merging with Lionsgate to form Lionsgate Studios Corp. SCRM shareholders will own 12.7% of the new entity. Shares of SCRM increased by 0.66% following the announcement.
The merger news is directly related to SCRM, as it is one of the entities involved in the formation of Lionsgate Studios Corp. The slight increase in share price indicates a positive market reaction, suggesting a potential short-term uptick in SCRM's stock price. The importance is high due to the significant transformation this merger represents for SCRM, but not at the maximum because the deal closure is anticipated in the future (spring 2024), which may lead to some uncertainty.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100