Lionsgate has acquired a majority stake in 3 Arts Entertainment, the Jon Feltheimer-led company said on Wednesday. 3 Arts will continue to operate under the leadership of its partners with an operating board, Lionsgate specified.
Negotiations between the two entities heated up last month, when Lionsgate offered between $300 million and $350 million for 50 percent of the TV and film production house. Specific financial terms of the now-closed deal were not officially disclosed, though it stands to reason that the dollar range holds and the percentage has grown to 51 percent.
“We’re excited to be partnering with a best-in-class talent management company that shares our entrepreneurial culture and vision for the future,” Lionsgate CEO Jon Feltheimer said in a media release. “This deal checks all the boxes – a strategic and accretive transaction for our shareholders and a win/win partnership for both companies. It enables us to deepen our already successful relationship with 3 Arts and allows them to offer a richer palette of opportunities to their clients.”
“We’re thrilled to be partnering with one of the most dynamic and innovative entertainment companies in the business,” the 3 Arts management team added. “Every day our clients are asking about the changing landscape, and this venture will create enormous opportunities to harness Lionsgate’s areas of expertise to give clients a competitive edge.”
The deal was negotiated for Lionsgate by Television Group COO Laura Kennedy. The studio was represented by Robert Haymer of Latham & Watkins LLP. 3 Arts was advised by investment bank Moelis & Company LLC, Alan Epstein at Venable LLP and Craig Jacobson at Hansen, Jacobson.
3 Arts is the production house behind TV hits “It’s Always Sunny in Philadelphia,” “30 Rock,” “The Office,” “Parks and Recreation,” “Brooklyn Nine Nine,” “Master of None,” “Unbreakable Kimmy Schmidt” and “Silicon Valley,” among others. The company has also produced films like “The Edge of Tomorrow,” “I Am Legend,” “Office Space” and “The Matrix.”