Lionsgate Considers Spin-Off of Digital Assets (Report)

The company could put such holdings as Break Media, its stake in Epix, TV Guide Network and and horror VOD service FearNet into a separate stock and get a $800 million valuation for them.

NEW YORK – Lionsgate is considering a spin-off of digital businesses, including its men-focused video advertising network Break Media, its stake in premium TV service Epix, its stake in TV Guide Network and assets and horror VOD service FearNet, the New York Post reported Monday.

A spin-off could value these assets at around $800 million, it said, citing executives familiar with the matter. It could help highlight their value given that Lionsgate’s total market capitalization as of Friday’s market close stood at $815 million.

Lionsgate management also recently said it may dispose of non-core assets. h

The businesses considered for a spin-off account for 15 percent- 20 percent of the company’s total annual revenue of $1.6 billion most recently, according to the Post.

It highlighted recent tech IPO news, such as an IPO filing from Internet radio firm Pandora, and Demand Media's recent $1.5 billion stock market debut as a possible driver for considering a spin-off along with AOL’s recent decision to spend $315 million on the acquisition of the Huffington Post.

Lionsgate declined comment.

Etan Vlessing contributed to this report.