Screaming Eagle Acquisition Corp. (stock symbol: SCRM), a SPAC that raised $750 million when it went public in January 2022, has announced that it will be merging with Lionsgate Studios, a studio and entertainment company.
SCRM is currently trading at $10.62, up $.06 for the day.
Investor presentation: EX-99.2 (sec.gov)
Lionsgate signs $4.6 billion SPAC deal for studio business
PUBLISHED FRI, DEC 22 20238:52 AM EST
UPDATED 12 MIN AGO
Reuters
December 22, 2023
In this image released by Lionsgate, Jennifer Lawrence portrays Katniss Everdeen, left, and Liam Hemsworth portrays Gale Hawthorne in a scene from “The Hunger Games.” (AP Photo/Lionsgate, Murray Close) / Murray Close
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Blank check firm Screaming Eagle Acquisition Corp said on Friday it has agreed to merge with the studio business of entertainment company Lionsgate in a deal valued at about $4.6 billion.
The deal is expected to deliver about $350 million in gross proceeds to Lionsgate, including $175 million from a private investment in public equity and the remaining from the special purpose acquisition company’s (SPAC) trust account.
The studio business holds a library of popular content, including “The Hunger Games”, “John Wick”, “The Twilight Saga” and “Ghosts”.
Lionsgate will own 87.3% of the total shares of Lionsgate Studios, while Screaming Eagle’s shareholders, founders and equity investors are expected to own about 12.7% of the combined entity. The deal is expected to close in the spring of 2024.
Also called blank-check firms, SPACs use proceeds from their initial public offerings (IPO) to merge with private firms. Such mergers allow the private firms to sidestep a lengthy IPO process to list their shares on bourses.
SPAC deals have largely fallen out of favor following a bumper run in 2020 and 2021, after they drew intense scrutiny from the U.S. Securities and Exchange Commission.
Lionsgate signs $4.6 billion SPAC deal for studio business (cnbc.com) |
