Lionsgate is pairing outside capital with a distribution arrangement in a new joint venture with Steven Paul’s SP Media. The studio will hold majority control and manage the venture, while SP Media makes a capital investment intended to support Lionsgate’s continued diversification of 3 Arts and other newer businesses.
At the same time, SP Media will produce independent feature films that Lionsgate will distribute. It is a two-way deal: Lionsgate gets capital and a film slate; SP Media gets a distributor for its productions.
The structure
- SP Media’s role: invest capital and produce independent films for the slate.
- Lionsgate’s role: hold the majority stake, manage the joint venture and distribute the features.
- What Lionsgate gets: funding to continue expanding 3 Arts and other new businesses.
- What SP Media gets: a studio distribution partner for its films.
Not a Lionsgate stake
The arrangement stops short of an equity investment in Lionsgate itself. Paul is a co-financier in the joint venture, not a minority shareholder in the studio. That distinction matters: Lionsgate can fund specific business lines without opening the parent company’s cap table.
Why the timing matters
The venture was announced against a backdrop of corporate interest. Deadline reports that Legendary is conducting due diligence after sending Lionsgate a takeover offer last week, but sources say no formal process is underway and no bankers have been hired. A business-level joint venture does not answer the M&A question, but it shows Lionsgate continuing to build its pipeline while fielding interest.
Lionsgate CEO Jon Feltheimer called Paul “a savvy and experienced entrepreneur” with a long relationship with the studio. Paul described Lionsgate as “one of the most dynamic and entrepreneurial content studios in the media space today.”
The partner’s record
Paul is chairman, founder and CEO of Crystal Sky Pictures and SP Media Group. His film credits include the Ghost Rider films, Ghost in the Shell and the Lionsgate-distributed Rambo: Last Blood. SP Media President and COO Scott Karol and Paul also advise Hollywood ambassador Jon Voight and have worked on bipartisan federal legislation for a U.S. film and TV tax credit.
Paul is no stranger to media deal-making. In 2024, he led a group of investors that made a $2.25 billion offer for National Amusements, the Redstone family holding company that controlled Paramount voting stock. That bid did not result in a deal, but it underlines his appetite for entertainment assets.
What it means for the business
For Lionsgate, the venture adds production volume to its distribution pipeline and brings in capital for non-core growth. For SP Media, it reduces risk by attaching films to an established distributor rather than building theatrical infrastructure from scratch. For media operators, the takeaway is structural: a scoped joint venture can raise capital and secure a slate while preserving optionality on the parent company.
Moelis advised Lionsgate on the transaction, Lazard advised SP Media, and Paul Hastings represented SP Media.
Source: Deadline
