Core Viewpoint - Lionsgate and Lionsgate Studios are seeking shareholder approval for the separation of Lionsgate Studios' motion picture and television operations from Lionsgate's other businesses, including the STARZ subscription platforms [2][3]. Group 1: Shareholder Meetings - The annual general and special meetings for Lionsgate and Lionsgate Studios will take place on April 23, 2025 [3]. - Shareholders of record as of March 12, 2025, are entitled to vote at the meetings [3]. - The board of directors recommends that shareholders vote "FOR" each of the proposals presented [3]. Group 2: Proxy Materials - Revised proxy materials are available on the SEC's website [1]. - A supplement to the joint proxy statement/prospectus was filed on March 14, 2025, in connection with the meetings [4]. Group 3: Company Information - Lionsgate owns approximately 87% of the outstanding shares of Lionsgate Studios, which is a leading standalone content company with a diverse portfolio [12][13].

Core Insights - SHEIN has launched a limited-edition collection in collaboration with Lionsgate, inspired by "The Hunger Games" franchise, blending fashion with fandom [1][2] - The collection features bold apparel and accessories for both men and women, celebrating themes of survival, resilience, and revolution [2][3] - The Hunger Games franchise has sold over 100 million copies of its novels and grossed over $3.4 billion at the global box office [3] Company Overview - SHEIN is a global online fashion and lifestyle retailer, headquartered in Singapore, known for its affordable prices and on-demand production methodology [5] - Lionsgate Global Products & Experiences is a division of Lionsgate Studios Corp., focusing on leveraging film and television brands to drive revenue and consumer engagement through various experiences and merchandise [6] Product Details - The collection is available on SHEIN's website, with prices ranging from USD $5 to $20, encouraging social media engagement through specific hashtags [4] - The collaboration includes vibrant designs and symbolic imagery that allow fans to express their connection to "The Hunger Games" [2][3]

Core Viewpoint - Lionsgate and Lionsgate Studios are planning a separation of their Studios and Starz Businesses, with shareholder meetings scheduled for April 23, 2025, to discuss the proposed arrangement [1][2][3]. Company Overview - Lionsgate owns approximately 87.8% of Lionsgate Studios, which is recognized as a leading standalone, publicly-traded content company, alongside the premium subscription platform STARZ [4]. - Lionsgate Studios is noted for its diversified motion picture and television production and distribution businesses, a strong portfolio of brands and franchises, and a library of over 20,000 titles [5]. Meeting Details - The annual general and special meetings for Lionsgate and Lionsgate Studios will address proposals related to a plan of arrangement involving Lionsgate, Lionsgate Studios, LG Sirius Holdings ULC, and New Lionsgate under the Business Corporations Act of British Columbia [2]. - The record date for determining eligible shareholders to vote at the meetings is set for March 12, 2025 [1].

Core Viewpoint - Lionsgate Studios Corp. (LION) has shown a significant price increase of 18.8% over the past four weeks, with a mean price target of $10.83 indicating a potential upside of 27.1% from the current trading price of $8.52 [1] Price Target Analysis - The average price target consists of three estimates ranging from a low of $8.50 to a high of $14, with a standard deviation of $2.84, suggesting variability in analyst predictions [2] - The lowest estimate indicates a slight decline of 0.2%, while the highest estimate suggests a substantial upside of 64.3% [2] - A low standard deviation indicates a strong agreement among analysts regarding the stock's price movement [7] Analyst Sentiment - Analysts have shown a positive trend in earnings estimate revisions for LION, which is a strong indicator of potential stock upside [4][9] - The Zacks Consensus Estimate for the current year has increased by 113.8% over the past month, reflecting a positive outlook from analysts [10] - LION holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - Solely relying on price targets for investment decisions may not be prudent, as they can often mislead investors [3][5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]

Core Viewpoint - Lionsgate Studios Corp. (LION) is showing potential as a stock pick due to a recent "golden cross" event, indicating a bullish trend reversal [1][4]. Technical Analysis - A "golden cross" occurs when a short-term moving average (50-day) crosses above a long-term moving average (200-day), suggesting a potential bullish breakout [2]. - The formation of a golden cross involves three stages: a downtrend that bottoms out, the crossover of moving averages, and continued upward momentum [3]. Recent Performance - LION has increased by 26.5% over the last four weeks, indicating strong upward momentum [4]. - The company currently holds a 2 (Buy) rating on the Zacks Rank, reinforcing its positive outlook [4]. Earnings Outlook - There have been no cuts to earnings estimates for the current quarter, with one revision higher in the past 60 days, and the Zacks Consensus Estimate has also increased [4]. - The combination of positive earnings revisions and technical indicators suggests that LION may continue to see gains in the near future [5].

Core Viewpoint - Lionsgate Studios Corp. (LION) has seen a 23.7% increase in share price over the past four weeks, closing at $8.55, with a potential upside indicated by Wall Street analysts' price targets suggesting a mean estimate of $10.83, representing a 26.7% upside [1] Price Targets - The average price target consists of three short-term estimates ranging from a low of $8.50 to a high of $14, with a standard deviation of $2.84, indicating variability among analysts [2] - The lowest estimate suggests a decline of 0.6% from the current price, while the highest estimate indicates a potential upside of 63.7% [2] Analyst Sentiment - Analysts show strong agreement regarding LION's ability to report better earnings than previously predicted, which supports the view of potential upside [4] - The Zacks Consensus Estimate for the current year has increased by 113.8% over the past month, with no negative revisions [10] - LION holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - While price targets are often sought after by investors, their reliability has been questioned, as they can mislead rather than guide investment decisions [3][5] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6] - A low standard deviation among price targets indicates a high degree of agreement among analysts, which can be a starting point for further research [7]

Financial Performance - Lionsgate reported a significant increase in revenue, reaching $1.2 billion for the quarter, representing a 15% year-over-year growth[1]. - Lionsgate's operating income for the quarter was reported at $150 million, a 10% increase compared to the previous year[7]. - Lionsgate anticipates a continued upward trend, projecting revenue growth of 10-12% for the next fiscal year[3]. Subscriber Growth - The company experienced a 20% increase in subscriber growth for its STARZ streaming service, now totaling 30 million subscribers[2]. Content Production and Investment - The company is investing $200 million in new content production, focusing on original series and films to enhance its streaming offerings[4]. - Lionsgate's film division is expected to release 10 major films in the upcoming year, with a projected box office revenue of $800 million[9]. International Expansion - Lionsgate plans to expand its international market presence, targeting an increase in revenue from international markets by 25% over the next two years[5]. Strategic Acquisitions - The company is exploring strategic acquisitions to bolster its content library and distribution capabilities, with a budget of $500 million allocated for potential deals[6]. Technology and User Experience - The company is implementing new technology for content delivery, aiming to improve user experience and reduce streaming costs by 15%[8]. Risk Factors - The company has identified key risk factors, including competition and regulatory changes, which may impact future performance[10].

Financial Data and Key Metrics Changes - Consolidated revenue for the quarter was $971 million, with adjusted OIBDA at $144 million and operating income at $36 million. Reported fully diluted earnings per share was a loss of $0.09, while adjusted earnings per share was a profit of $0.28 [19][20] - Adjusted OIBDA for Lionsgate Studios is forecasted to be between $300 million to $320 million for the fiscal year, while Starz's North American business is expected to generate approximately $200 million of adjusted OIBDA [19][20] Business Line Data and Key Metrics Changes - Studio revenue grew 3.2% year over year to $714 million, with adjusted OIBDA increasing 45% to $112 million. Trailing twelve-month library revenue was $954 million, representing a 22% increase compared to last year's Q3 [20][21] - Motion Picture revenue for the quarter was $309 million, with segment profit at $84 million. The television segment saw revenue of $405 million, up 63% year over year, with segment profit significantly increasing to $61 million [20][21] - Media Networks revenue was $345 million, with segment profit at $25 million, reflecting a decline due to exiting most international markets [22] Market Data and Key Metrics Changes - Starz ended the quarter with 12.6 million North American OTT subscribers, representing sequential growth of 170,000 subscribers. Total North American subscribers were 20 million, showing a modest sequential decrease [23] - Starz has successfully transitioned its revenue from 70% linear to 70% digital over the past five years, doubling its domestic OTT subscriber base [16] Company Strategy and Development Direction - The company is focusing on diversifying its buyer mix and cutting costs in its television business while expanding its distribution footprint with key partner renewals and new bundling deals [7][15] - The company announced an extension of its exclusive pay one deal with Starz through 2028 and a new exclusive pay deal with Amazon Prime Video, which is expected to significantly increase contributions from the pay television window [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong fourth quarter, driven by film performance carryover, strong scripted series deliveries, and positive growth in OTT subscribers [29][30] - The company anticipates continued subscriber growth for Starz, particularly in the OTT segment, while expecting a consistent decline in the linear business [79] Other Important Information - The company is preparing for the separation of its businesses, with regulatory review ongoing and a shareholder meeting expected in mid to late April [16][40] - The company is also focusing on ancillary opportunities, including the opening of the John Wick experience in Las Vegas and various stage productions [12][51] Q&A Session Summary Question: Context for the expected increase in studio EBITDA in Q4 - Management indicated that the strong fourth quarter is driven by strength in film and TV, with carryover from mid-sized films and a robust lineup of scripted series [29][30] Question: Update on the separation process - Management confirmed that the SEC review is the last substantial item before separation, with an updated proxy expected soon [38][40] Question: Details on the Amazon relationship and its impact - The Amazon deal allows for earlier access to titles and is expected to significantly benefit both Starz and the studio post-separation [42][46] Question: Industry recovery in content production - Management noted that the TV market is slowly recovering, with a focus on leveraging strong IP and cross-divisional collaboration [57][59] Question: Cost management and talent compensation - Management acknowledged that while talent costs remain high, they are exploring innovative ways to manage overall production costs [67][68]

Financial Performance - Lionsgate reported third quarter revenue of $970.5 million, a decrease from $975.1 million in the prior year quarter[3]. - Net loss attributable to Lionsgate shareholders was $21.9 million, or $0.09 diluted net loss per share, compared to a net loss of $106.6 million in the prior year quarter[2][19]. - Adjusted net income attributable to Lionsgate shareholders was $68.4 million, or $0.28 adjusted diluted net income per share[2][3]. - Operating income for Lionsgate was $35.8 million, compared to an operating loss of $43.5 million in the prior year quarter[19]. - The total segment profit for the three months ended December 31, 2024, was $176.7 million, slightly down from $182.0 million in the same period last year[34]. - The total segment profit for the nine months ended December 31, 2024, was $335.5 million, down from $471.5 million in the same period of 2023, indicating a decline of 29%[44]. - The company reported a net cash outflow from operating activities of $163.0 million for the three months ended December 31, 2024, compared to a cash inflow of $128.2 million in the same period of 2023[92]. - The company reported a significant increase in accounts receivable, netting $281.5 million for the nine months ended December 31, 2024, compared to $57.4 million in the previous year[21]. Segment Performance - The Studio Business reported revenue of $713.8 million, an increase of 3% from the prior year quarter, with adjusted OIBDA up 45% to $112.0 million[5]. - Television Production segment revenue increased 63% to $404.6 million, driven by higher episodic deliveries and licensing of library content[7]. - The Motion Picture segment revenue decreased to $309.2 million, attributed to the comparison with last year's successful theatrical releases[6]. - Media Networks segment revenues decreased to $344.5 million in Q3 2024, down from $417.2 million in Q3 2023, primarily due to a decline in Starz Networks revenue[36]. - Total revenues for the three months ended December 31, 2024, increased to $713.8 million, up from $691.6 million in the same period of 2023, representing a growth of 17.5%[90]. - Motion Picture segment revenue for Q3 2024 was $309.2 million, down 30.2% from $443.2 million in Q3 2023[99]. - Television Production segment revenue increased by 62.9% to $404.6 million in Q3 2024 from $248.4 million in Q3 2023[99]. Cash Flow and Liquidity - The company experienced a net cash outflow of $118.9 million from operating activities in Q3 2024, contrasting with a net cash inflow of $71.1 million in Q3 2023[21]. - Cash and cash equivalents decreased to $186.2 million as of December 31, 2024, from $277.0 million as of March 31, 2024[88]. - Cash flows from financing activities included borrowings of $1,346.6 million and repayments of $1,300.4 million for the nine months ended December 31, 2024, resulting in a net cash inflow of $46.2 million[120]. - Cash flows provided by financing activities included borrowings of $1,543.8 million and repayments of $1,421.9 million for the nine months ended December 31, 2024, resulting in a net cash inflow of $121.9 million[63]. - The company reported cash flows provided by operating activities of $14.1 million for the nine months ended December 31, 2024, compared to $11.3 million for the same period in 2023, representing an increase of approximately 24.8%[63]. Debt and Obligations - Total film-related obligations at the end of Q3 2024 were $1,940.2 million, up from $1,801.8 million at the beginning of the period[62]. - Film related obligations at the beginning of the period (current and non-current) were $2,023.6 million for the nine months ended December 31, 2023, compared to $1,938.0 million for the same period in 2024, indicating a decrease of approximately 4.2%[63]. - The company reported a goodwill and intangible asset impairment of $663.9 million in the nine months ended December 31, 2023, impacting overall financial health[53]. - The company incurred content impairment charges of $7.3 million related to the Motion Picture and Television Production segments during the three months ended December 31, 2024[48]. Restructuring and Costs - The Company recorded restructuring and other costs of $43.3 million for the three months ended December 31, 2024, significantly lower than $116.9 million in the same period of 2023[45]. - The company expects to incur approximately $26.1 million in severance expenses under a voluntary severance program, with $14.6 million recognized in Q3 2024[105]. - Restructuring and other costs for Q3 2024 totaled $40.9 million, a decrease from $52.5 million in Q3 2023[105]. Subscriber Metrics - North American OTT subscribers grew by 170,000 sequentially, indicating a rebound in subscriber growth for STARZ[8]. - As of June 30, 2024, Starz North America had 13.20 million OTT subscribers, a decrease of 1.4% from the previous quarter, while total subscribers were 21.30 million, down 2.3%[40]. - The total global subscribers, excluding exited territories, were 27.17 million as of June 30, 2024, a decrease of 2.0% from the previous quarter[40]. Non-GAAP Measures - Adjusted OIBDA is defined as operating income before adjusted depreciation and amortization, providing a clearer view of the company's operational performance[66]. - The company uses non-GAAP financial measures to evaluate operating performance, which are considered important for understanding the fundamental performance of the business[81]. - Adjusted Net Income (Loss) attributable to Lions Gate Entertainment Corp. shareholders is adjusted for various non-operating items, providing a more accurate reflection of the company's profitability[78]. - The company believes that Adjusted Net Income (Loss) provides useful information regarding its business operations by excluding non-recurring items[135].

Group 1 - The article emphasizes the importance of identifying unique investment opportunities within special situations and value investing [1] - It highlights a focus on analyzing market inefficiencies to capture both upside and downside potential [1] - A disciplined approach to research and valuation is advocated to uncover investment opportunities [1] Group 2 - The article does not provide any specific company or industry analysis, nor does it mention any financial data or performance metrics [2][3]