Steven Paul’s SP Media, Lionsgate Launch Joint Venture

Steven Paul’s SP Media and Lionsgate have unveiled plans for a new joint venture to invest in new businesses and indie film production.

Terms of the deal were not disclosed, but Paul is understood to be leading an investment of around $100 million to help expand and grow Lionsgate’s platform, an insider claims to The Hollywood Reporter. No additional financial backers were listed by the companies as they unveiled the deal.

That backing could result new ventures as well as the diversification and expansion of 3 Arts Entertainment and other studio businesses.

SP Media will also produce independent feature films that Lionsgate will distribute, with the now-solo studio after its Starz spin having a majority stake in the joint venture and controlling its operation.

Paul, chairman, founder and CEO of Crystal Sky Pictures and SP Media Group, has been behind box office hits like the Baby Geniuses franchise, Ghost Rider and Ghost Rider 2: Spirit of Vengeance, starring Nicolas Cage, Ghost in the Shell, starring Scarlett Johansson, and the Lionsgate-distributed Rambo: Last Blood. Of late, he’s also been a Hollywood diplomat to President Trump and his administration to back a federal film and TV tax credit.

“Steven is a savvy and experienced entrepreneur who has a longstanding relationship with our studio, and I’m pleased to partner with him across multiple touchpoints of our business. He recognizes the unique and valuable assets that we have built and his investment will help drive the continued growth of these businesses,” Lionsgate CEO Jon Feltheimer said in a statement.

The investment in the Hollywood studio also comes as Lionsgate is the subject of persistent M&A chatter as a possible takeover target. Since its formal separation from Starz in 2025, the company has been seen as a pure play option amid continuing industry consolidation with a 20,000-title film and TV portfolio.

“Lionsgate is one of the most dynamic and entrepreneurial content studios in the media space today. I’m delighted to build on my longstanding relationship with Jon Feltheimer and the Lionsgate leadership team as we grow our businesses together in an industry environment filled with opportunity,” Paul said in his own statement.

The joint venture agreement will allow Lionsgate to continue scaling its content platform with new indie feature films. The collaboration in turn allows SP Media to partner with an independent, standalone Hollywood studio, while gaining a distribution platform for his films.

The deal was negotiated for Lionsgate by COO Brian Goldsmith, executive vp and general counsel Bruce Tobey, and senior vp of corporate cevelopment Suzy Felfeli, and for SP Media the negotiations were conducted by SP Media Group president and COO Scott Karol.

Moelis served as financial advisor to Lionsgate and Lazard served as financial advisor to SP Media.