SCHEDULE 13D/A: Steven Mnuchin's Liberty 77 Group Discloses 10.8% Stake in Starz Entertainment Following Corporate Separation

Steven Mnuchin's investment entities, collectively known as the Liberty 77 Group, have disclosed a 10.8% beneficial ownership stake in Starz Entertainment Corp. following the recent separation of Lionsgate's studio and Starz businesses.

Summary

• The filing is an Amendment No. 8 to Schedule 13D, updating beneficial ownership information for Starz Entertainment Corp., formerly Lions Gate Entertainment Corp.
• The reporting persons, including Liberty 77 Capital L.P., Liberty 77 Fund L.P., Liberty 77 Fund International L.P., Liberty 77 Capital Partners L.P., Liberty Capital L.L.C., STM Partners LLC, and Steven T. Mnuchin, collectively hold 1,803,788 Common Shares.
• This aggregate beneficial ownership represents 10.8% of the 16,709,928 Common Shares expected to be outstanding immediately following the separation transactions.
• The Common Shares were acquired in exchange for Class A Voting Common Shares and Class B Non-Voting Common Shares of the Issuer previously held by the Liberty Funds.
• The acquisition is a result of a plan of arrangement completed on May 6, 2025, which separated the motion picture and television studio operations (LG Studios Business) from the STARZ-branded premium subscription platforms (Starz Business).
• As part of the separation, the original Issuer (Lions Gate Entertainment Corp.) was renamed Starz Entertainment Corp., and a new company, Lionsgate Studios Corp. (formerly New Lionsgate), was formed for the studio business.
• Shareholders of the original Issuer received shares in both Starz Entertainment Corp. and Lionsgate Studios Corp. based on their prior holdings.
• Common Shares of Starz Entertainment Corp. were consolidated on a 15-to-1 basis as part of the separation.

Sentiment

Score: 5

Explanation: The document is a factual disclosure of beneficial ownership following a corporate separation. It does not contain positive or negative financial performance indicators, nor does it express a sentiment beyond the standard 'investment purposes' statement.

Future Outlook

The Reporting Persons have acquired the securities for investment purposes and intend to continuously review their investment. They may increase or decrease their position, make additional acquisitions in the open market or privately, hold or dispose of investments, and/or enter into derivative transactions. They may also engage in communications with the Issuer's stockholders, management, and board of directors regarding operations, strategies, transactions, and board composition.

Management Comments

• "The Reporting Persons have acquired the securities reported in this Schedule 13D for investment purposes and intend to review such investment in the Issuer on a continuing basis."
• "The Reporting Persons may, from time to time, make additional acquisitions of Common Shares or other securities of the Issuer either in the open market or in privately negotiated transactions, including transactions directly with the Issuer."
• "Consistent with the Reporting Persons' investment purposes, they may engage in communications with, without limitation, one or more stockholders of the Issuer, management of the Issuer and/or one or more members of the Issuer's board of directors and may make suggestions or proposals concerning the Issuer's operations, prospects, business and financial strategies, strategic transactions, assets and liabilities, business and financing alternatives, the composition of the board of directors and such other matters as the Reporting Persons may deem relevant to their investment in the Issuer."

Industry Context

This filing reflects the finalization of a significant corporate restructuring within the entertainment sector, where Lionsgate Entertainment Corp. separated its film and television studio operations from its premium subscription platform, Starz. This move allows each entity to pursue independent strategic paths, potentially unlocking value by enabling more focused management and investment in their respective core businesses. Such separations are common in the media industry as companies seek to adapt to evolving consumption patterns and competitive landscapes, particularly the shift towards streaming services.

Stakeholder Impact

• Shareholders of the original Lions Gate Entertainment Corp. now hold shares in two separate entities, Starz Entertainment Corp. and Lionsgate Studios Corp., which could impact their investment strategy and valuation.
• The significant beneficial ownership by Steven T. Mnuchin's group indicates a notable institutional interest in Starz Entertainment Corp., potentially influencing future corporate decisions and market perception.

Next Steps

• Reporting Persons may increase or decrease their investment position in Starz Entertainment Corp.
• Reporting Persons may make additional acquisitions of Common Shares or other securities of the Issuer.
• Reporting Persons may hold or dispose of all or part of their investments.
• Reporting Persons may enter into derivative transactions with institutional counterparties.
• Reporting Persons may engage in communications with the Issuer's stockholders, management, and board of directors regarding various strategic and operational matters.

Key Dates

Keywords

Starz Entertainment Corp, Lionsgate, Steven T. Mnuchin, Liberty 77 Capital, Beneficial Ownership, Schedule 13D, Corporate Separation, Spin-off, Entertainment Industry, Media, Streaming, Film Studio