Premium movie network Starz will formally separate its business from parent company Lionsgate on Tuesday, with each company trading under separate symbols on public stock exchanges from that day forward.
The separation follows the approval of a Canadian court that cleared the way for Lionsgate to move forward on its long-planned separation of Starz, which was stymied by a number of external factors, including the two-year coronavirus pandemic, the 2023 Hollywood strikes and the acquisition of eOne Studios from Hasbro.
Lionsgate shareholders voted last month to approve the separation, but the split still required the approval of a Canadian court before it could be effectuated. Lionsgate was founded in Montreal, and has since moved its headquarters to California, while still maintaining its business registration in Quebec.
The separation will allow both companies to focus on differing aspects of the media and entertainment business. Lionsgate will continue to produce and sell full-length movies and television series to others, including Starz, without the added complexities of running a pay television and streaming network.
Likewise, Starz will concentrate its efforts on licensing shows and movies from a wide number of studios, including Lionsgate, for its cable multiplex network and associated streaming service. Other companies Starz has or may do business with include Lionsgate competitors like NBC Universal, Paramount and the Walt Disney Company.
On Wednesday, Starz will begin trading on the Nasdaq under the ticker symbol “STRZ,” while Lionsgate will debut on the New York Stock Exchange the same morning under the ticker symbol “LION.”
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Editor’s note: An earlier version of this story erroneously reported Starz would begin trading under its own ticker symbol on Tuesday.
