Lionsgate, Steven Paul's SP Media Form Joint Venture
Lionsgate will hold a majority stake and manage the venture, which will produce independent films for the studio to distribute.
Lionsgate and Steven Paul's SP Media announced a joint venture on Monday under which SP Media will make a capital investment in Lionsgate businesses, including 3 Arts and other new ventures, according to Deadline.
As part of the agreement, SP Media will produce independent feature films that Lionsgate will distribute. Lionsgate will hold the majority stake in the joint venture and will manage it.
Paul, the chairman, founder and CEO of Crystal Sky Pictures and SP Media Group, is not becoming a minority investor in Lionsgate overall but is a co-financier of the venture. Lionsgate CEO Jon Feltheimer said Paul has a longstanding relationship with the studio.
The deal was negotiated for Lionsgate by COO Brian Goldsmith, EVP & General Counsel Bruce Tobey and Senior VP Corporate Development Suzy Felfeli, and by SP Media Group President & COO Scott Karol for SP Media. Moelis was financial advisor to Lionsgate, Lazard advised SP Media, and Paul Hastings LLP represented SP Media.
Background
Paul has shepherded franchises including Baby Geniuses, Ghost Rider and Ghost Rider: Spirit of Vengeance with Nicolas Cage, Ghost in the Shell with Scarlett Johansson, and the Lionsgate-distributed Rambo: Last Blood. In the summer of 2024, when Skydance pursued Paramount, Paul led a group of investors that offered $2.25 billion for National Amusements Inc., which owned 77% of Paramount's voting stock.
Quick answers
Who will manage the Lionsgate-SP Media joint venture?
Lionsgate will hold the majority stake and manage the joint venture.
What will SP Media do under the deal?
SP Media will produce independent feature films that Lionsgate will distribute, and will make a capital investment in Lionsgate businesses including 3 Arts.