Item 8.01. Other Events
In connection with its proposed merger
with Starz, a Delaware corporation (“Starz”), Lions Gate Entertainment Corp. (“Lions Gate”) issued
a press release announcing the pricing of $520 million in aggregate principal amount of senior notes due 2024 (the “notes”)
in a private placement and the allocation of its $2.0 billion term loan B credit facility.
A copy of the press release is attached
hereto as Exhibit 99.1 and is incorporated herein by reference, and is filed in compliance with Rule 425 of the Securities Act of 1933, as amended.
Important Information for Investors and Stockholders
This communication does not constitute an offer to sell or the solicitation
of an offer to buy the notes nor shall there be any offer, solicitation or sale of the notes in any state in which such offer,
solicitation or sale would be unlawful. The notes have not been and will not be registered under the Securities Act, or applicable
state securities laws, and may not be offered or sold in the United States absent registration or pursuant to an applicable
exemption from the registration requirements of the Securities Act and applicable state securities laws.
Caution Regarding Forward-Looking Statements
This communication may contain certain forward-looking statements,
including certain plans, expectations, goals, projections, and statements about the financing of the proposed transaction, the benefits of the proposed transaction,
the merger parties’ plans, objectives, expectations and intentions, the expected timing of completion of the transaction,
and other statements that are not historical facts. Such statements are subject to numerous assumptions, risks, and uncertainties.
Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking
statements. Forward-looking statements may be identified by words such as expect, anticipate, believe, intend, estimate, plan,
target, goal, or similar expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar
variations.
While there is no assurance that any list of risks and uncertainties
or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained
or implied in the forward-looking statements including: the substantial investment of capital required to produce and market films
and television series; increased costs for producing and marketing feature films and television series; budget overruns, limitations
imposed by Lions Gate’s or Starz’s credit facilities and notes; unpredictability of the commercial success of Lions
Gate’s or Starz’s motion pictures and television programming; risks related to Lions Gate’s or Starz’s
acquisition and integration of acquired businesses; the effects of dispositions of businesses or assets, including individual films
or libraries; the cost of defending Lions Gate’s or Starz’s intellectual property; technological changes and other
trends affecting the entertainment industry; the possibility that the proposed transaction does not close when expected or at all
because required regulatory, shareholder or other approvals are not received or other conditions to the closing are not satisfied
on a timely basis or at all; the risk that the financing required to fund the transaction is not obtained; potential adverse reactions
or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction;
uncertainties as to the timing of the transaction; competitive responses to the transaction; the possibility that the anticipated
benefits of the transaction are not realized when expected or at all, including as a result of the impact of, or problems arising
from, the integration of the two companies; the possibility that the transaction may be more expensive to complete than anticipated,
including as a result of unexpected factors or events; diversion of management’s attention from ongoing business operations
and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from
the announcement or completion of the transaction; Lions Gate’s ability to complete the acquisition and integration of Starz
successfully; litigation relating to the transaction; and other factors that may affect future results of Lions Gate and Starz.
Additional factors that could cause results to differ materially from those described above can be found in Lions Gate’s
Annual Report on Form 10-K for the year ended March 31, 2016, and in its subsequent Quarterly Reports on Form 10-Q, including for
the quarter ended June 30, 2016, each of which is on file with the Securities and Exchange Commission (the “SEC”) and
available in the “Corporate” section of Lions Gate’s website,
http://www.lionsgate.com
, under the heading
“Reports” and in other documents Lions Gate files with the SEC, and in Starz’s Annual Report on Form 10-K for
the year ended December 31, 2015 and in its subsequent Quarterly Reports on Form 10-Q, including for the quarters ended March 31,
2016 and June 30, 2016, each of which is on file with the SEC and available in the “Starz Corporate” section of Starz’s
website,
http://www.Starz.com
, under the subsection “Investor Relations” and then under the heading “SEC
Filings” and in other documents Starz files with the SEC.
All forward-looking statements speak only as of the date they
are made and are based on information available at that time. Neither Lions Gate nor Starz assumes any obligation to update forward-looking
statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect
the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements
involve significant risks and uncertainties, caution should
be exercised against placing undue reliance on such statements.
Important Additional Information
In connection with the proposed transaction, Lions Gate has
filed with the SEC a Registration Statement on Form S-4 that includes a Joint Proxy Statement of Lions Gate and Starz and
a Prospectus of Lions Gate, as well as other relevant documents concerning the proposed transaction. The registration statement
has not yet become effective and the Joint Proxy Statement included therein is in preliminary form. The proposed transaction involving
Lions Gate and Starz will be submitted to Starz’s stockholders and Lions Gate’s stockholders for their consideration.
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation
of any vote or approval. STOCKHOLDERS OF LIONS GATE AND STOCKHOLDERS OF STARZ ARE URGED TO READ THE REGISTRATION STATEMENT AND
THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS
ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY CONTAIN IMPORTANT INFORMATION. Stockholders may obtain a free
copy of the definitive joint proxy statement/prospectus, as well as other filings containing information about Lions Gate and Starz,
without charge, at the SEC’s website (
http://www.sec.gov
). Copies of the joint proxy statement/prospectus and the
filings with the SEC that are incorporated by reference in the joint proxy statement/prospectus can also be obtained, without charge,
by directing a request to James Marsh, Senior Vice President of Lions Gate Investor Relations, 2700 Colorado Avenue, Santa Monica,
California, 90404, or at (310) 255-3651, or to Starz, 8900 Liberty Circle, Englewood, Colorado 80112, or at 1-855-807-2929.
Participants in the Solicitation
Lions Gate, Starz, and certain of their respective directors,
executive officers, and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction.
Information regarding Lions Gate’s directors and executive officers is available in its definitive proxy statement, which
was filed with the SEC on July 28, 2016, and certain of its Current Reports on Form 8-K. Information regarding Starz’s
directors and executive officers is available in its definitive proxy statement, which was filed with SEC on April 29, 2016, and
certain of its Current Reports on Form 8-K. Other information regarding the participants in the proxy solicitation and
a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus
and other relevant materials filed with the SEC. Free copies of this document may be obtained as described in the preceding
paragraph.