Britain’s departure from the European Union has derailed a huge Hollywood merger. The widely expected combination of Lionsgate and Starz now will not go through, The New York Post reports.
“One of the banks being lined up to provide the financing was forced to withdraw from the deal after the British pound fell about 10 percent versus the dollar over two days, one source told The Post,” the publication reports.
The source is quoted saying: “It fell apart over the weekend. Brexit hurt the financing. It’s dead.”
The Post adds: “Rumors of a likely deal between the Hollywood studio and the premium pay-TV channel gained steam in the last couple of weeks — pushing shares of both companies higher.”
The report notes that the deal could be resurrected if economic conditions turn around.