Lionsgate and Steven Paul's SP Media Launch New Joint Venture
Lionsgate will retain majority ownership and control of the venture, with SP Media supplying capital and independent films for distribution.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Lionsgate (LION) and Steven Paul's SP Media formed a joint venture to invest in new businesses and support Lionsgate's content platform. Lionsgate will majority own and control the venture. SP Media will make a capital investment to co-invest in new ventures that expand Lionsgate's platform and extend resources toward the continuing diversification of 3 Arts and other Lionsgate businesses.
The agreement also includes independent feature-film production: SP Media will produce films that Lionsgate will distribute, providing an additional source of content for the studio.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate point. Forward-looking: it has not happened yet and may not happen.SP Media will invest capital to co-invest in new ventures expanding Lionsgate's platform.
- Minor point. Forward-looking: it has not happened yet and may not happen.3 Arts and other Lionsgate businesses will receive resources for continued diversification.
- Minor point. Forward-looking: it has not happened yet and may not happen.Independent feature films produced by SP Media will supply additional content for Lionsgate to distribute.
Negative
- None.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SP Media Has Made a Significant Capital Investment to Co-invest into New Businesses that Expand Lionsgate's Global Platform
Deal Includes Partnership on Independent Feature Film Production and Extends Resources toward the Continuing Diversification of 3 Arts and Other Lionsgate Businesses
The relationship will be managed through a joint venture majority owned and controlled by Lionsgate.
The agreement allows Lionsgate to continue scaling its content platform with a new source of independent feature films. The collaboration allows SP Media to partner with one of the world's leading independent standalone studios, and it gives SP a world-class distributor for its films.
Paul, the chairman, founder and CEO of Crystal Sky Pictures and SP Media Group, has shepherded a number of commercial box office successes including the Baby Geniuses franchise, Ghost Rider and Ghost Rider 2: Spirit of Vengeance, starring Nicolas Cage, Ghost in the Shell, starring Scarlett Johansson, and the Lionsgate-distributed Rambo: Last Blood.
"Steven is a savvy & experienced entrepreneur who has a longstanding relationship with our studio, and I'm pleased to partner with him across multiple touchpoints of our business," said Lionsgate CEO Jon Feltheimer. "He recognizes the unique and valuable assets that we have built and his investment will help drive the continued growth of these businesses."
"Lionsgate is one of the most dynamic and entrepreneurial content studios in the media space today," said Paul. "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 & General Counsel Bruce Tobey, and Senior VP Corporate Development Suzy Felfeli and for SP Media by SP Media Group President & COO Scott Karol. Moelis served as financial advisor to Lionsgate and Lazard served as financial advisor to SP Media. Paul Hastings LLP represented SP Media on the deal.
About Lionsgate
Lionsgate (NYSE: LION) is one of the world's leading standalone, pure play content companies. It brings together diversified motion picture and television production and distribution businesses, a world-class portfolio of valuable brands and franchises, a premier talent management and production powerhouse at 3 Arts Entertainment and a more than 20,000-title film and television library, all driven by Lionsgate's bold and entrepreneurial culture.
About Steven Paul and the SP Group of Companies
Steven Paul is an entrepreneur, producer and financier of motion pictures and television, and his SP Group of Companies has holdings in media, entertainment, talent representation, technology, hospitality, banking and real estate. The diverse portfolio includes The Samuel Goldwyn Building in
For Lionsgate media inquiries, please contact:
Peter D. Wilkes
310-255-3726
pwilkes@lionsgate.com
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SOURCE Lionsgate
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
Who will control the Lionsgate and SP Media joint venture?
Lionsgate will majority own and control the joint venture with Steven Paul's SP Media.
What does the Lionsgate and SP Media partnership include?
The partnership includes SP Media capital investment in new ventures expanding Lionsgate's platform and independent films produced by SP Media for Lionsgate to distribute. It also extends resources toward the continuing diversification of 3 Arts and other Lionsgate businesses.