Lionsgate has announced that it's agreed in principle to buy Summit Entertainment for $412 milliion, combining Hollywood's leading minimajors. Lionsgate announced the deal at the close of the stock market Friday.
Waiting on official release from Lionsgate...
From the LA Times Twitter:
Some quotes from The Wrap:
"We are uniting two powerful entertainment brands, bringing together two world-class feature film franchises to establish a commanding position in the young adult market, strengthening our global distribution infrastructure and creating a scalable platform that will result in significant and accretive financial benefits to Lionsgate shareholders," Lionsgate Co-Chairman and Chief Executive Officer Jon Feltheimer and Vice Chairman Michael Burns said in a statement.
"Rob Friedman and Patrick Wachsberger have built a remarkable organization, and we're pleased to welcome Summit's talented team to the Lionsgate family," the pair added.
In nabbing Summit, Lionsgate beat out other suitors such as Colony Capital.
Summit brings with it debt, but that will be paid off with profits from the final two “Twilight” movies, allowing Lionsgate to keep that sum off its own books.
The remainder was funded with $55 million of existing Lionsgate cash, $45 million of cash received from a newly issued series of Lionsgate convertible notes, $50 million of Lionsgate common stock and an additional $20 million of cash or stock to be issued at Lionsgate's option within 60 days.
In return, Lionsgate will get a modest library of titles that also includes “The Hurt Locker” and “R.E.D.,” which it can add to its paid TV network Epix. Perhaps more important, Lionsgate will gain Summit’s expertise in international distribution -- an area where it is lacking.
However, insiders at both studios feel that Summit’s experience in transforming the vampire "Twilight" series into a global box office phenomenon can help Lionsgate pull off a similar feat with "The Hunger Games." This could help turn the studio, a launching pad for mid-budget genre films, into a lekking ground for young adult film franchises.Source