Lionsgate has taken a 20% stake in Spyglass Media, and the companies together have formed a strategic content partnership. Lionsgate has also acquired most of the studio’s 200-film library, which includes roughly 200 titles such as “Scream 4,” “The King’s Speech” and several Quentin Tarantino films.
The two companies announced the news jointly on Thursday, and the agreement gives Lionsgate a 20% investment stake in the Spyglass, whose major assets include the next “Scream” film due out January 14, 2022, as well as the fashion competition series “Project Runway” and a revival of the “Hellraiser” franchise, which is currently in pre-production.
The agreement also includes a multi-year first-look TV deal between Lionsgate Television and Spyglass.
Among some of the movies that Lionsgate has now acquired, adding to Lionsgate’s already 17,000 strong library of film and TV titles, include “Fruitvale Station,” “Scream 4,” “Scary Movie 5,” “Spy Kids 4,” “Paddington,” “Silver Linings Playbook,” “Lee Daniel’s The Butler” and several Quentin Tarantino films, including “Django Unchained,” “Inglourious Basterds” and “The Hateful Eight.”
Gary Barber will continue to lead Spyglass as its chairman and CEO and Spyglass’ senior leadership team will remain in their current roles.
“This agreement continues to grow our valuable portfolio of IP while partnering us with Gary Barber, one of the leading entrepreneurs and content creators in the business,” Lionsgate CEO Jon Feltheimer said in a statement. “It is a win/win deal that creates significant incremental value for both companies while continuing to add to our global content distribution platform at a time when the demand for premium content is greater than ever.”
“I am grateful for the steadfast support from our strategic investors and am thrilled to align with Jon Feltheimer, Michael Burns and all our partners at Lionsgate as we look forward to expanding our relationship in creating great content and exploring strategic opportunities together in the marketplace,” Barbe said.
“Two years ago, we were excited to team up with Gary and have him do what he does best –build Spyglass Media Group into a global premium content company and, in short order, increase shareholder value. Once again, he successfully exceeded those challenges, and we are delighted to continue the journey with him,” Spyglass’ strategic investors all said in a statement. The strategic investors include Andy Mitchell, founder, CEO and managing partner of Lantern Capital Partners, Toby Emmerich, chairman, Warner Bros. Pictures Group; Tarak Ben Ammar, chairman, Eagle Pictures; and Mooky Greidinger, CEO of Cineworld Group.
The transaction was negotiated for Lionsgate by a team headed by Lionsgate COO Brian Goldsmith and Lionsgate EVP & general counsel Corii Berg, with Sheppard Mullin LLP acting as legal advisor. The transaction was negotiated for Spyglass by a team headed by Chief Legal Officer Cheryl Rodman, with Moelis & Company LLC serving as the exclusive financial advisor and Venable LLP acting as a legal advisor for Spyglass Media Group.