EXCLUSIVE: Lionsgate Entertainment is in final negotiations to acquire an additional stake in management and production company 3 Arts Entertainment, sources tell Deadline. The exact size of the deployment is unclear, but it is believed to be significant. A Lionsgate representative declined to comment.
In the spring of 2018, independent studio Lionsgate acquired a majority stake (just over 50%) in 3 Arts, with the option to buy more/the rest five years later. The new agreement, now finalized after months of negotiations, significantly increases Lionsgate’s investment in the industry-leading management/production company without full ownership.
At the time of the original investment in 2018, Lionsgate’s initial stake was valued at between $300 million and $350 million. Prices for media properties like 3 Arts have risen over the past five years, and the new acquisition was followed by a new valuation, a standard procedure that I understand was higher than that for the original 2018 deal.
Over the past five years, 3 Arts has contributed significantly to Lionsgate’s television programming. The collaboration recently produced five shows, Mythical quest (apple+), Search (apple+), The Snake Queen (Starz), The Hunters (Starz) and Julia (Maximum). In addition, 3 Arts has a whole series of series with other studios.
In 2022, Lionsgate acquired a minority stake in London and Los Angeles-based management and production company 42 to complete a three-way deal with 3 Arts, a key driver of the deal.
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
