It's Official: Lionsgate Buys Summit Entertainment for $412.5 Million
by Alex Billington
January 13, 2012
And history has been made. Today is now the day that it was officially announced and confirmed via a press release that Lionsgate is buying Summit Entertainment, the upstart indie distributor movie studio that began in 2006 and hit it rich with the still-not-over-yet Twilight series. The momentous deal was rumored for months and nearly confirmed earlier this week, but the press release announces the deal includes "a combination of cash and stock valued at $412.5 million." I'm much more interested to see how these two "indie" studios join forces to become one powerful Hollywood movie studio, it'll be an exciting time ahead.
The transaction unites two leading studios with powerful brands and complementary assets, solidifying Lionsgate's position as the world's largest and most diversified independent entertainment company. By acquiring Summit, Lionsgate enhances its feature film and home entertainment offerings and further broadens its 13,000 title filmed entertainment library to include such titles as The Twilight Saga, The Hurt Locker and RED. The integration of both Summit's domestic and international theatrical film operations will significantly enhance Lionsgate's production and distribution capacity, while also extending the Company's worldwide reach and creating a dominant international sales organization. "As demonstrated by this acquisition, Lionsgate remains focused on preserving a strong balance sheet while pursuing its long-term growth strategy," said Mark H. Rachesky, Co-Chairman of the Lionsgate Board of Directors.
For those curious about what might happen with some of the franchises, LA Times' blog Company Town (via SlashFilm) has posted an update from CEO Jon Feltheimer about the Twilight franchise (groan) and how it might not be over, despite Breaking Dawn: Part 2 coming up soon. "He believes the film franchise will continue to have value to his company, even after the Nov. 16 release of the fifth movie completes the adaptation of author Stephenie Meyer's four books." Feltheimer told them, "It's hard for me to imagine a movie that does $700 million-plus doesn't have ongoing value." But it sounds likely it might go to TV next - "I would certainly hope so," was his response when asked if that's a possibility. We'll definitely be sure to keep you informed on details as the sale is finalized and they announce what will actually happen with them.
For more information, read the full press release. We will continue to keep you updated on any more news regarding these two studios combining powers, but it is now official - Lionsgate will now own Summit.
Maybe in the near future it will be the Big Seven? Who knows... as long as cinema and film making prosper.
Anonymous on Jan 14, 2012
Fantastic! Great cinematic coup! The execs already have a tidy springboard of a slate in, "Twilight", "The Hunger Games", and "The Expendables", this year. I just hope they plot their next move carefully and not get greedy and arrogant like, Fox Studios, nor complacent like, Universal....which this newly merged duo is poised to overtake in the studio rankings, in as little as, two years. ...It would be wise to continue the adaptations of the hottest books out there for future franchises and stray away from the tired remakes the other studios keep banking on. Lionsgate/Summit need to secure Stallone and Shwarzenegger to multi-picture deals and continue to spur the comebacks of other cinematic icons---since this studio is starting to resurrecting careers at a Tarantino-like speed. ...All in all, this is a huge WIN all around. We, the fans/audience will get to see more of what we want to see from a newly-merged studio that appears adamant to cater to us!!!! I hope we don't get disappointed!
Spider on Jan 14, 2012
Twilight NEEDS to stop! I NEED HELP - whether or NOT you are a TWILIGHT Fan please read and/or pass this article around regarding its seductive draw on girls/women and the dysfunctional ending of Breaking Dawn. Thanks, and SO sorry for all the Twilight fuss, World! Search "ExplainTwilightBreakingDawnEnding" on Blogger
Anonymous on Jan 14, 2012
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