Lions Gate Entertainment Corp. (USA) (NYSE:LGF) has officially closed its deal to acquire Starz (NASDAQ:STRZA).
The deal had Lions Gate Entertainment Corp. (USA) paying $4.4 billion for Starz. LGF shareholders that voted on the matter were 98% in favor of the deal. 95% of STRZA shareholders voted to merge with LGF. The votes were cast on Dec. 7 at each of the companies shareholder meetings.
Lions Gate Entertainment Corp. (USA) and Starz also got all the approval it needed from regulators and completed other customary closing conditions. The transaction adds 16,000 film and TV series, and STRZA’s premium pay network with almost 25 million subscribers, to LGF’s library.
Under the deal, each share of Lions Gate Entertainment Corp. (USA)’s common stock has been reclassified as 0.5 of the new LGF.A shares and 0.5 of the new LGF.B shares. Shareholders of Starz Series A common stock are receiving $18.00 in cash as well as 0.6784 shares of LGF’s Class B non-voting stock. Starz Series B common stock shareholders are getting $7.26 in cash, 0.6321 shares of the company’s Class A voting stock and 0.6321 shares of Class B non-voting stock.
Now that the deal is complete, Starz will operate as a subsidiary of Lions Gate Entertainment Corp. (USA). Current STRZA President and CEO Chris Albrecht will continue to manage the company. He will answer to LGF CEO Jon Feltheimer and joins the company’s Executive Management Committee.
Lions Gate Entertainment Corp. (USA) and Starz say that they have already completed much of the transition. The deal has Starz’s home entertainment and television distribution operations being combined with LGF’s home entertainment and television distribution businesses.
