On December 22, 2023, Screaming Eagle Acquisition Corp., a special purpose acquisition company, announced its definitive agreement to merge with Lionsgate's Studio Business, creating Lionsgate Studios Corp. This move separated Lionsgate Studios as a platform-independent content entity, encompassing Television Studio and Motion Picture Group segments, and a valuable film and television library with franchises like The Hunger Games and John Wick.

The transaction structured Lionsgate's ownership at 87.3% of Lionsgate Studios, with Screaming Eagle public shareholders and investors holding about 12.7%. The deal valued Lionsgate Studios at approximately C$6.1 billion (US$4.6 billion), excluding the STARZ platform, retained by Lionsgate.

This strategic combination was expected to generate around C$467 (US$350 million) in gross proceeds for Lionsgate, including C$234 million (US$175 million) from PIPE (Private Investment in Public Equity) financing. The funds aimed to strengthen Lionsgate's balance sheet and support initiatives like the acquisition of eOne, set to close by year-end.

Lionsgate Studios' common shares were to be traded separately from Lionsgate's Class A and B shares. The completion of the transaction, anticipated in spring 2024, depended on regulatory and shareholder approvals.

Key financial advisors included Morgan Stanley for Lionsgate and Citigroup for Screaming Eagle. Legal advisors were Wachtell, Lipton, Rosen & Katz, and Denton's Canada LLP for Lionsgate, with White & Case LLP and Goodmans LLP advising Screaming Eagle. Davis Polk & Wardwell LLP counseled Citigroup and Morgan Stanley for their roles in the equity financing.