The widely expected merger between Lionsgate and Starz has been derailed because of the Brexit currency chaos, The Post has learned.
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.
“It fell apart over the weekend,” the source said. “Brexit hurt the financing. It’s dead.”
The person cautioned that the deal could be resuscitated if economic conditions improve.
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.
Shares of Lionsgate, the studio behind “Hunger Games” and “Divergent,” rose 5.8 percent on June 23, to $21.72, as whispers of an impending deal raced from Tinseltown to Wall Street.