April 12 (Reuters) - Lionsgate Studio raised its private

investment in public equity (PIPE) amount to $225 million ahead

of its merger with Screaming Eagle Acquisition ( SCRM ), the

special purpose-acquisition company (SPAC) firm disclosed in a

regulatory filing on Friday.

The blank-check deal was initially expected to raise $175

million in PIPE financing for Lionsgate from mutual funds and

other investors.

Through PIPE deals, SPACs raise additional funds from

private investors, including hedge funds and institutions, in

exchange for shares before the deal is completed.

While an upsize in a PIPE deal can signal strong investor

confidence and improved liquidity, it may also result in

dilution for existing shareholders.

Lionsgate had last year agreed to spin off its studio in a

deal valued at about $4.6 billion, including debt, to create a

new public firm for its film and television assets, which

include about 18,000 titles.

The amount of proceeds expected to be delivered to Lionsgate

has also been upsized to between $350 million and $409.5

million, from $350 million previously, the filing showed.