Lions Gate to focus on spinning off studio business instead of Starz cable channel

Lions Gate Entertainment Corp. LGF.B, -1.61% said Wednesday it’s now focusing on spinning off its studio business, instead of its Starz cable channel. In a regulatory filing, the company said it remains on a path to separating the two. “As negotiations progress, we have increased our focus on the possibility of spinning our studio business, creating a number of financial and strategic benefits,” said the filing. “In that regard, we are continuing productive negotiations with prospective strategic and financial partners on both sides of our business.” The company had announced the plan earlier this year on the grounds that the two would fetch a higher valuation separated than together. Shares were slightly higher Wednesday, but are down 50% in the year to date, while the S&P 500 SPX, +2.26% has fallen 23%.