Lions Gate snaps up Summit Ent for $412.5 mn

MUMBAI: In a move that unites two of Hollywood?s largest independent studio, Lions Gate Entertainment Corp. has acquired Summit Entertainment LLC for $412.5 million in cash and stock.
The agreement gives Lions Gate library rights to the first 14 vampire films in the Twilight series.
Said Lions Gate Vice Chairman Michael Burns in a statement, ?We think it solidly positions us. It extends our reach dramatically. It increases the size of the library.?
While some believe that income from ticket sales, home videos and TV rights may generate as much as $1 billion in free cash flow all through this year, some others believe that the transaction is a net positive for all parties, but consolidation in the sector is reflective of the significant challenges in the industry.
Most of the purchase was funded with cash from Summit, Lions Gate said yesterday in a statement. The announced terms suggest Lions Gate used about $240 million in cash from Summit.
The balance was financed with $55 million of Lions Gate cash, $45 million from new Lions Gate convertible notes, $50 million of Lions Gate common stock and an added $20 million of cash or stock to be issued at Lions Gate?s option within 60 days, according to a statement.
Both film labels that operate from Santa Monica, California will remain active producers.
Details of the agreement are being worked out.

Latest Reads
Usha International associates with YRF’s Sui Dhaaga – Made in India

Usha International, one of India’s leading household consumer durables company, proudly announces its association with Sui Dhaaga - Made In India produced by Yash Raj Films and starring Bollywood heartthrobs Varun Dhawan and Anushka Sharma.

Movies Hindi
Kamal Haasan talks about the pathbreaking films that inspired his career

MN+, the gold class of Hollywood movies associated with Kamal Haasan’s Vishwaroop 2 for Season 3 of Pathbreakers.

Movies Hollywood
No. 1 Bhojpuri Channel, ZEEL’s Big Ganga collaborates with foremost Bhojpuri superstar Ravi Kishan for a 7-movie deal

Over the last two decades, Bhojpuri movies industry has seen a revolution in the form of content, talent, and production.

Movies Regional
Zee Cinemalu Announces World Television Premiere of Superhit Romance-Idi Maa Prema Katha

Continuing to respect and support new-time actors, Zee Cinemalu’s World Television Premiere of Idi Maa Prema Katha stars the well-known faces from the small screen – Zee Telugu’s very own Anchor Ravi and Kalyana Vaibhogam-famed Meghana Lokesh.

Movies Regional
&pictures to air Sonakshi Sinha and Sidharth Malhotra?s spine-chilling thriller Ittefaq on Saturday, 21st July 2018 at 8pm

A CBI officer is assigned a double murder case which involves two witnesses who are also the prime suspects of the case.

Movies Hindi
Zee Action to air The Monkey King 2 on Saturday, 21st July at 8pm

Five hundred years after the Havoc in Heaven, the Tang Priest is appointed by Buddha to go to the West to fetch the sacred scriptures

Movies Hindi
Zee to launch Zee Classic HD channel

The Punit Goenka-led Zee Entertainment Enterprises Ltd (ZEEL), is all set to launch Zee Classic's HD version.

Movies Hindi
Shemaroo Entertainment Releases Padmaavat On Blu-ray and DVD for Cinema Lovers

Shemaroo Entertainment Limited, one of India?s leading global content power house, released the Blu-rays and DVDs of Sanjay Leela Bhansali?s magnum opus, Padmaavat- one of the most expensive Indian films ever made.

Movies Hindi
Al-Futtaim, PVR sign MoU to explore opportunities in MENA region

Multiplex operator PVR signed a memorandum of understanding (MoU) with Dubai's Al-Futtaim to explore opportunities to jointly develop cinema business in the Middle East and North Africa (MENA) region.

Movies Hindi

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories