Lionsgate and Steven Paul‘s SP Media are launching a joint venture in which the latter will be making a capital investment that will allow Lionsgate to continue its diversification of 3 Arts and other new businesses.
At the same time, the deal, unveiled Monday, calls for SP Media to produce independent features films that Lionsgate will distribute. Lionsgate will have the majority stake in the joint venture, and will manage it.
Note, Paul is not becoming a minority investor in Lionsgate overall, rather a co-financier in the venture. With Lionsgate, SP gains a distributor for its feature slate.
The news comes at an interesting time, with Legendary doing due diligence with Lionsgate after sending the company a takeover offer last week. Sources tell Deadline that no formal process is underway for Lionsgate to accept acquisition offers, meaning no bankers have been hired.
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Paul is the chairman, founder and CEO of Crystal Sky Pictures and SP Media Group, and has shepherded such franchises as Baby Geniuses; Ghost Rider and Ghost Rider 2: Spirit of Vengeance, starring Nicolas Cage; Ghost in the Shell, starring Scarlett Johansson; and the Lionsgate-distributed Rambo: Last Blood.
SP Media Group President & COO Scott Karol and Paul are special advisors to Donald Trump’s Hollywood ambassador Jon Voight, and have been working with federal lawmakers and industry groups on bipartisan legislation aimed at creating a U.S. film and TV tax credit and curbing runaway production.
In the summer of 2024, when David Ellison’s Skydance was pursuing Paramount, Paul spearheaded a group of investors that included John Paul DeJoria, the billionaire co-founder of Patron tequila and Paul Mitchell hair care products, to make a $2.25 billion offer for National Amusements Inc., the Redstone family holding company that owned 77% of Paramount’s voting stock.
“Steven is a savvy and 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.”
“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.”
The joint-venture deal with SP Media was negotiated for Lionsgate by COO Brian Goldsmith, EVP & General Counsel Bruce Tobey and Senior VP Corporate Development Suzy Felfeli, and by Karol for SP Media.
Moelis served as financial advisor to Lionsgate and Lazard served as financial advisor to SP Media. Paul Hastings LLP represented SP Media on the deal.
Jill Goldsmith contributed to this report.
