As a longtime fan of Lionsgate‘s captivating films and engaging television shows, I find myself both excited and encouraged by the studio’s recent decision to transition from its dual-class share structure to a single class of stock. Having grown up watching blockbuster franchises like The Hunger Games and John Wick on the big screen, it’s heartening to see Lionsgate take steps towards greater transparency and fairness for all shareholders.
1) Lionsgate is progressing with a proposal to simplify its two-tier share system by converting it into a sole class of stock, granting Class A shareholders a 12% bonus in the process.
In an SEC filing on Monday, the CEO-headed studio announced that a committee of their board had considered eliminating their dual-class voting system prior to spinning off their film business. The Lionsgate board then endorsed this proposal during a July 25 meeting.
Lionsgate shareholders will have an opportunity to vote on a “one share, one vote” system in an upcoming proxy/registration statement related to the proposed split of its business into two separate companies: Starz and its studio. Lionsgate believes that by forming two distinct publicly traded entities, it can more effectively appraise and reward the value of Starz and its studio assets individually, compared to their combined evaluation under the current consolidated structure. The studios behind “The Hunger Games” and “John Wick” franchises are optimistic that this separation will lead to more generous valuations for both entities.
For this purpose, Lionsgate’s independent film and television production unit, Lionsgate Studios, has started trading individually on the NASDAQ Stock Market, distinct from its Starz business. This separation is identified by the ticker symbol LION. Lionsgate anticipates gaining approximately $350 million in funds through this corporate action.
Starting Lionsgate Studios on NASDAQ was intended to provide Hollywood’s Lionsgate with new possibilities prior to finalizing the long-anticipated split of its film and TV divisions and Starz. This move included securing additional funds and combining forces with existing businesses.
I’m a huge fan of Lionsgate Studios, and here’s why: This media powerhouse is where the magic happens, with two major divisions – the Motion Picture Group and Television Studio. And let me tell you, they’ve got quite an impressive collection! With over 20,000 films and TV shows in their library, there’s always something new to discover.
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2024-07-30 00:55