July 15, 2021
Lionsgate has acquired the majority of the Spyglass Media Group feature film library of approximately 200 movies, and formed a strategic content partnership with the content producer headed by former MGM Studios boss Gary Barber.
The agreement gives Lionsgate a 20% investment stake in Spyglass, whose assets include the latest installment of the “Scream” horror franchise to be released Jan. 14, 2022; feature film The Upside; fashion competition series “Project Runway”; and the revival of the “Hellraiser” franchise, currently in pre-production. The agreement also includes a multiyear first-look television deal with Lionsgate Television.
Barber will continue to lead Spyglass as its chairman/CEO and the senior leadership team will remain in their current roles.
Library titles acquired encompass a broad range of commercial and critical hits, including Fruitvale Station, The King’s Speech, Scream 4, Scary Movie 5, Spy Kids 4, Paddington, Silver Linings Playbook, Lee Daniel’s The Butler and a growing portfolio of Quentin Tarantino titles — Django Unchained, Inglourious Basterds and The Hateful Eight.
Lionsgate generated more than $700 million in catalog-based revenue in its most-recent fiscal year across multiple distribution channels, including retail packaged media, rental, digital sellthrough and streaming.
“This agreement continues to grow our valuable portfolio of IP while partnering us with Gary Barber, one of the leading entrepreneurs and content creators in the business,” Lionsgate CEO Jon Feltheimer said in a statement. “It is a win/win deal that creates significant incremental value for both companies while continuing to add to our global content distribution platform at a time when the demand for premium content is greater than ever.”
Spyglass strategic investors include Andy Mitchell, founder, CEO and managing partner of Lantern Capital Partners; Toby Emmerich, chairman of Warner Bros. Pictures Group; Tarak Ben Ammar, chairman of Eagle Pictures; and Mooky Greidinger, CEO of Cineworld Group.
The transaction was negotiated for Lionsgate by chief operating officer Brian Goldsmith and Lionsgate EVP and general counsel Corii Berg, with Sheppard Mullin LLP acting as legal advisor. The transaction was negotiated for Spyglass by a team headed by chief legal officer Cheryl Rodman, with Moelis & Company LLC serving as the exclusive financial advisor and Venable LLP acting as a legal advisor for Spyglass Media Group.