Lionsgate Forms Joint Venture With Steven Paul, Movie Producer Who Has Had Trump’s Ear

Lionsgate and Steven Paul, an entrepreneur and film producer who has personally lobbied President Donald Trump on a federal tax incentive for Hollywood, are forming a joint venture through which Paul’s SP Media will make a “significant” investment in new initiatives together with Lionsgate.

Under the agreement, SP Media also will produce independent feature films that Lionsgate will distribute. The relationship will be managed through the joint venture, which will be majority owned and controlled by Lionsgate. The amount of Paul’s planned investment into the JV was not disclosed. It’s understood that the joint venture’s investments will be into new businesses that expand Lionsgate’s content, including the continued diversification of 3 Arts Entertainment, Lionsgate’s talent management and production division, into new areas like sports and influencers.

Paul, who serves as chairman, founder and CEO of Crystal Sky Pictures and SP Media Group, has shepherded several box-office successes in years past, including 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.”

More recently, Paul has been working with actor Jon Voight to pitch Trump on a series of measures to help the U.S. entertainment industry, including a federal tax incentive for TV and film productions. At an Aug. 31 meeting at the White House, Paul cited his upcoming film about Richard Nixon’s early years — telling Trump the project would need to be produced overseas unless there is a viable U.S. tax incentive.

The announcement of the JV between Lionsgate and SP Media comes after a report last week that Legendary Entertainment revived its bid to acquire Lionsgate.

“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,” Lionsgate CEO Jon Feltheimer said in announcing the agreement. “He recognizes the unique and valuable assets that we have built and his investment will help drive the continued growth of these businesses.”

Paul said in a statement: “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’s SP Group of Companies has holdings in media, entertainment, talent representation, technology, hospitality, banking and real estate. The portfolio includes the Samuel Goldwyn Building in Century City; the Casa Marella Boutique Hotel in South Beach Miami; the JLTV television network; Atlas Comics (founded by Marvel Comics owner Martin Goodman); Avenue Six Studios in Van Nuys, California; Echo Bridge Distribution Co.; and Hanks Café in Century City.

The deal was negotiated for Lionsgate by COO Brian Goldsmith, EVP and general counsel Bruce Tobey and senior VP of corporate development Suzy Felfeli and for SP Media by group president and COO Scott Karol. Moelis served as financial adviser to Lionsgate and Lazard served as financial adviser to SP Media. Law firm Paul Hastings repped SP Media on the deal.