Lionsgate and producer Steven Paul’s SP Media have formed a joint venture that will enable the mini-major to scale and handle distribution of Paul’s features.
SP Media will make a “significant capital investment” in new ventures that expand the Lionsgate platform and provide backing for the ongoing diversification of Lionsgate’s businesses, including the talent management and production company 3 Arts as it pushes into growth areas like sports and influencers.
Lionsgate will distribute SP Media features, although it was unclear at time of writing whether Lionsgate International will represent the films for international sales. Paul just wrapped production in the UK on the historical drama Nixon’s Gamble, which SP Media shot outside the UK because the production could not afford to film in the US. Lawmakers in the US are currently considering a bill to create the first US federal tax incentive.
Lionsgate majority-owns and will control the joint venture. CEO Jon Feltheimer said, “Steven is a savvy and experienced entrepreneur who has a longstanding relationship with our studio, and I’m pleased to partner with him across multiple touchpoints of our business.”
Paul, the chairman, founder and CEO of Crystal Sky Pictures and SP Media Group, whose credits include the Ghost Rider and Baby Geniuses franchises and Last Blood, added: “Lionsgate is one of the most dynamic and entrepreneurial content studios in the media space today. 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.”
The deal was negotiated for Lionsgate by COO Brian Goldsmith, EVP and general counsel Bruce Tobey, and SVP corporate development Suzy Felfeli with 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 represented SP Media on the deal.
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