Lionsgate Increases Majority Stake In 3 Arts Entertainment

EXCLUSIVE: Lionsgate Entertainment is in final negotiations to acquire an additional ownership stake in management and production company 3 Arts Entertainment, sources tell Deadline. The exact size of the stake is unclear but it is understood to be significant. A rep for Lionsgate declined comment.

In spring 2018, indie studio Lionsgate acquired a majority (just over 50%) stake in 3 Arts, with an option to buy more/the rest five years later. The new deal, which is now being finalized after months of negotiations, ups Lionsgate’s investment in the leading management/production company in a major way without going for a full ownership.

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At the time of the original 2018 investment, Lionsgate’s initial stake was valued in the $300M-$350M range. The prices of media assets like 3 Arts have gone up over the past five years, and the new acquisition followed a new valuation, a standard procedure, which I hear was higher than the one done for the original 2018 deal.

Over the last five years, 3 Arts has been a major contributor to Lionsgate’s TV series slate. The partnership has yielded five recent shows, Mythic Quest (Apple+), Manhunt (Apple+), The Serpent Queen (Starz), The Hunting Wives (Starz) and Julia (Max). Additionally, 3 Arts has a slew of series with other studios.

In 2022, Lionsgate acquired a minority stake in London- and Los Angeles-based management and production company 42 to create a three-way with 3 Arts, a main driver behind the deal.

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