Liberty Global, Discovery to acquire shares in Lionsgate


Details

Michelle Clancy

| 11 November 2015





Liberty Global and Discovery Communications have agreed to each take a 3.4% stake of Lionsgate's current outstanding shares.


Liberty Global and Discovery Communications will each pay approximately $195 million for their respective stakes in Lionsgate. Additionally, each will have one designee appointed to Lionsgate's Board of Directors - president and CEO Mike Fries for Liberty Global and president and CEO David Zaslav for Discovery.

Liberty Global and Discovery Communications are each entering into separate commercial agreements with Lionsgate providing for a preferred partner relationship with respect to licensing rights for certain theatrical and television content across their markets. The share acquisitions are expected to close later today.

"We're very enthusiastic about this alliance with Lionsgate, and I'm pleased to join chairman Mark Rachesky and the rest of the Lionsgate Board," said Fries. "The company is a unique success story in the entertainment industry. Lionsgate is led by an incredible management team and they've created one of the deepest portfolio of brands and franchises in the industry. This strategic content investment will also create opportunities for Lionsgate to become an even more important supplier of high-end premium content to our 24 million video and 18 million broadband subscribers."