Lionsgate and SP Media have formed a joint venture that will co-invest in new businesses tied to the studio’s platform and back new independent feature films.
Lionsgate and SP Media, led by producer, financier and entrepreneur Steven Paul, have formed a joint venture that will make capital available for new ventures tied to Lionsgate’s platform and for the continued diversification of 3 Arts and other Lionsgate businesses.
The companies said the joint venture will be majority owned and controlled by Lionsgate. SP Media also will produce independent feature films that Lionsgate will distribute.
The deal gives Lionsgate a new source of independent films as it works to expand its content platform. It also gives SP Media a distributor for its films through one of the larger independent studios in the business.
Jon Feltheimer, Lionsgate’s chief executive, said he was pleased to expand the relationship with Paul.
“Steven is a savvy & experienced entrepreneur who has a longstanding relationship with our studio, and I’m pleased to partner with him across multiple touchpoints of our business,” said Lionsgate CEO Jon Feltheimer. “He recognizes the unique and valuable assets that we have built and his investment will help drive the continued growth of these businesses.”
Paul said the agreement builds on a long relationship with Lionsgate.
“Lionsgate is one of the most dynamic and entrepreneurial content studios in the media space today,” said Paul. “I’m delighted to build on my longstanding relationship with Jon Feltheimer and the Lionsgate leadership team as we grow our businesses together in an industry environment filled with opportunity.”
Paul is chairman, founder and CEO of Crystal Sky Pictures and SP Media Group. His credits include the Baby Geniuses franchise, “Ghost Rider,” “Ghost Rider 2: Spirit of Vengeance,” “Ghost in the Shell” and Lionsgate-distributed “Rambo: Last Blood.”
Lionsgate said the deal was negotiated by COO Brian Goldsmith, Executive Vice President and General Counsel Bruce Tobey and Senior Vice President of Corporate Development Suzy Felfeli. SP Media was represented by SP Media Group President and COO Scott Karol. Moelis served as financial advisor to Lionsgate and Lazard served as financial advisor to SP Media. Paul Hastings LLP represented SP Media.
