Form 4: Lionsgate Studios Corp.: Director John D. Harkey Jr. Reports Changes in Beneficial Ownership Following Share Exchange
SEC Form 4 Filing
Director John D. Harkey Jr. reports changes in beneficial ownership of Lionsgate Studios Corp. common shares following a share exchange related to the Arrangement Agreement.
Summary
- On May 6, 2025, John D. Harkey Jr., a director of Lionsgate Studios Corp., reported changes in his beneficial ownership of the company's common shares.
- The change occurred due to the consummation of transactions outlined in the Arrangement Agreement dated January 29, 2025, and amended on March 12, 2025.
- As part of the agreement, Harkey's shares of Lions Gate Entertainment Corp.'s Class A and Class B shares were exchanged for Lionsgate Studios Corp.'s new common shares and Starz Entertainment Corp. common shares.
- Following the transaction, Harkey directly owns 152,474 common shares of Lionsgate Studios Corp.
Sentiment
Score: 6
Explanation: The document is a routine regulatory filing related to a pre-planned corporate action. It doesn't inherently convey positive or negative sentiment, but reflects a structural change within the company.
Industry Context
This Form 4 filing reflects a corporate restructuring event, which is common in the entertainment industry as companies seek to optimize their business segments and shareholder value. The separation of Lionsgate and Starz is part of this trend.
Comparison to Industry Standards
- Corporate restructurings involving share exchanges are frequently observed in the media and entertainment sector.
- Similar transactions include the split-off of ViacomCBS (now Paramount Global) from CBS Corporation, where shareholders received shares in both entities.
- Another example is the separation of News Corporation and 21st Century Fox, allowing each company to focus on distinct business areas.
- The Lionsgate/Starz separation mirrors these strategies, aiming to unlock value by creating two independent, focused companies.
Stakeholder Impact
- Shareholders of Lions Gate Entertainment Corp. were impacted by the share exchange, receiving shares in both Lionsgate Studios Corp. and Starz Entertainment Corp.
- The restructuring may lead to changes in the strategic direction of both companies, potentially affecting employees and customers in the long term.
Key Dates
| Date | Description |
|---|---|
| January 29, 2025 | Date of the original Arrangement Agreement. |
| March 12, 2025 | Date of the amending agreement to the Arrangement Agreement. |
| May 6, 2025 | Date of the share exchange transaction and the reported change in beneficial ownership. |
| May 8, 2025 | Date of signature for the Form 4 filing. |
Keywords
beneficial ownership, Form 4, Lionsgate Studios Corp., John D. Harkey Jr., share exchange, director, LION, Arrangement Agreement
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