After nearly three years of regulatory hang-ups, pandemic delays, and internal restructuring, Lionsgate and STARZ are officially going their separate ways. With shareholder approval now secured, the long-anticipated spin-off will become a reality in early May. While the separation marks the end of their nine-year corporate marriage, it also sets the stage for a new era of media dealmaking.
What’s Happening
Lionsgate shareholders voted last week to approve the separation of its studio business from the STARZ premium channel and streaming service. As of May, both companies will begin trading independently — Lionsgate Studios on the NYSE under the ticker LION and STARZ on the NASDAQ as STRZ.
While this closes one chapter, it opens another: Both Lionsgate and STARZ are expected to be far more active players in the M&A landscape as independent entities. The split also includes a reverse stock split for STARZ and a restructuring of Lionsgate’s dual-class stock setup, further streamlining their public market profiles.
Why the Split?
It all comes down to value — or rather, the lack of it.
Executives have long argued that the combined company’s market valuation didn’t reflect the true worth of its assets. Wall Street was effectively punishing STARZ and Lionsgate for their complexity. Now, stripped of the “conglomerate discount,” both brands are positioned to shine as standalone — and potentially command a premium from future acquirers.
“Together, they were discounted for complexity. Separated, they’re more digestible for strategic buyers or public markets,” said Alex Lubyansky, M&A attorney at Acquisition Stars.
For Lionsgate, the move refocuses the company squarely as a global content studio. It’s now free to monetize its vast library, which includes IP from John Wick, The Hunger Games, and Twilight while being an obvious bolt-on acquisition target for a legacy studio or PE-backed content roll-up.
Meanwhile, STARZ can now explore distribution and bundling partnerships without being tethered to Lionsgate’s broader strategy. That includes possible acquisitions of niche streaming services aligned with its female and multicultural audience — or being acquired itself. STARZ CEO Jeff Hirsch has called the company “misunderstood,” and insists its profitable, digital-heavy model is built for scale.
The Output Deal Lives On
Despite the split, the companies are keeping a tight working relationship.
In January, Lionsgate and STARZ signed a multi-year extension to their content output deal. STARZ will retain exclusive pay-TV and SVOD rights for Lionsgate’s theatrical slate through 2028, including upcoming tentpoles like Now You See Me 3 and The Hunger Games: Sunrise on the Reaping. On the TV side, Lionsgate will continue to produce series for STARZ, including Power Book: Raising Kanan and the recently announced Spartacus: House of Ashur.
M&A Watch: Who Buys Whom?
The split is widely viewed as a precursor to potential deals. Analysts say both companies — now smaller, more agile, and easier to evaluate — are more viable as acquisition targets or acquirers.
- For STARZ, think AMC Networks, A&E, or Comcast’s upcoming SpinCo. Or even Roku or Apollo, who’ve previously kicked the tires.
- For Lionsgate, potential suitors include Sony, private equity firms, or a content-hungry streamer.
Don’t rule out a future where both companies get picked off — just not together.
The Take
This isn’t just a re-org. It’s a strategic repositioning with very real business consequences. Both Lionsgate and STARZ have been biding their time — now, with clean balance sheets, simplified structures, and strategic autonomy, they’re entering the next phase of the streaming wars.
And that phase is about scale, bundles, and — inevitably — M&A.
