Lionsgate is teaming up with producer, financier and entrepreneur Steven Paul’s SP Media through a new joint venture, as Paul has personally been lobbying Donald Trump for a federal tax incentive for film production alongside longtime actor collaborator Jon Voight and SPMG President/COO Scott Karol.
SP Media will make a capital investment of around $100 million, an individual familiar told TheWrap. The investment is for new ventures that help expand and grow the Hollywood studio’s content offering and extend resources toward the continuing diversification of 3 Arts and other Lionsgate businesses. SP Media will also produce independent feature films that Lionsgate will distribute.
The joint venture will be majority-owned and controlled by Lionsgate. Financial terms of the investment were not disclosed.
“Lionsgate is one of the most dynamic and entrepreneurial content studios in the media space today,” Paul said in a statement. “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 has been working hard on lobbying Trump for a federal film tax incentive for months, and the president gave his support in August, leading to the introduction of the bipartisan Motion Picture, Television, and Entertainment Revitalization Act, which will begin winding its way through Congress when lawmakers return to Washington for the lame duck session on Nov. 9. Sponsors of the bill are hoping to get it passed and sent to Trump for his final signature into law by the end of the year, with the incentive taking immediate effect.
Paul’s notable credits include the “Baby Geniuses” franchise, “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.”
“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,” Feltheimer added. “He recognizes the unique and valuable assets that we have built and his investment will help drive the continued growth of these businesses.”
The deal was negotiated by Lionsgate COO Brian Goldsmith, EVP & General Counsel Bruce Tobey and Senior VP Corporate Development Suzy Felfeli and 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 on the deal.
The joint venture with Paul comes as “Dune” producer Legendary Entertianment has submitted a takeover offer to acquire Lionsgate. The company has also attracted takover interest from Banijay, Mediawan and France’s Bollore Group, though those companies have not submitted a formal offer.
