Lions Gate Entertainment Corp. Class A Voting Shares

LGF.A

Market cap $2.07B

Michael Burns, Lionsgate vice chair, joins 'Fast Money' to talk Warner Bros. Discovery spinoff, new content, and more.

Jeffrey Hirsch, Starz CEO and president, joins Market Domination Overtime host Julie Hyman and Yahoo Finance Senior Reporter Allie Canal to discuss the company's recent separation from Lionsgate to become an independent streamer and the state of mergers and acquisitions (M&A) in the media industry.

Starz is fresh off its separation from Lionsgate and it's betting it can take on the likes of Netflix and HBO. The entertainment company added 530,000 streaming customers in the fourth quarter.

The newly solo Lionsgate Studios swung to a profit last quarter as motion picture revenue surged. The numbers are its first since splitting with Starz. Net income of $21.9 million for Lionsgate's fiscal fourth quarter ended in March compares with a $47 million loss the year earlier. Total revenue popped to $1.

The average of price targets set by Wall Street analysts indicates a potential upside of 27.5% in Lions Gate (LGF.A). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.

The Supreme Court of British Columbia, where Lionsgate is officially headquartered, has approved full separation of the company's studio business from Starz, the final step required to complete the split that's been in the works for years. Shareholders approved the operation last month.

Financial markets offered an early and negative response to President Donald Trump's plans to slap 100% tariffs on movies produced outside the United States with shares of media and entertainment companies down in early trading across the board. Netflix, which has been on a roll, slipped 4% at the open and Warner Bros.

Shareholders of Lions Gate Entertainment , the studio behind the "John Wick" movie franchise, have approved a plan to split its film and TV studio from the Starz business, a person familiar with the matter told Reuters on Wednesday.

Brad Haugen has joined Lionsgate as their EVP Digital Strategy & Growth. He'll be spearheading original content creation for digital platforms, brand partnerships and other storytelling initiatives in the digital space while monetizing Lionsgate's 20K-plus title film and TV library on social.

Lions Gate Entertainment is set for a separation from Starz in April, potentially paving the way for a high-premium acquisition. The company's content library, with over $950 million in revenue, remains its biggest asset and attraction for potential buyers. Despite better-than-expected earnings, Lions Gate struggles with cash flow deficits and lacks a clear film strategy, especially post-Borderlands debacle.