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Lionsgate to Buy Summit Entertainment in $700 Million Deal

Source Name:

Deadline

Source Url:

http://www.deadline.com/2012/01/exclusive-lionsgate-about-to-clinch-700m-deal-for-twilight-studio-summit-entertainment/

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Lionsgate to Buy Summit Entertainment in $700 Million DealThose smoldering vampires don’t come cheap. Deadline Hollywood reported yesterday that Lionsgate is close to sealing the deal on a $700 million purchase of Summit Entertainment. This officially means that the once prime demographic of 18- to 34-year-old men now takes a backseat to hormone-ravaged teenage girls and under-sexed soccer moms.

The details of the deal has Lionsgate (known among genre fans as the house that Saw built) giving $400 million in equity and assuming a $300 million loan from JP Morgan to purchase Summit Entertainment (which insiders value at about $350 to $450 million). Of course Summit Entertainment is best known for the Twilight franchise, which has earned enough money to purchase its own country (tentatively named Cullenland). The move would give Lionsgate some cash to hedge against the release of The Hunger Games this year. With $590 million in debt and a 2011 which saw box office tallies coming in 64 percent down from the year before, Lionsgate needs a win. Big time.

Summit Entertainment had recently hired an investment firm to help with expansion, but it now appears that heads of the company Patrick Wachsberger and Rob Friedman will be moving on. The pair claim to be ready to “…work within the Lionsgate structure,” but insiders feel the bad blood from the negotiations with Lionsgate will have the pair heading for ze hills within a month.

With just one Twilight film remaining, one has to wonder what is the true value of Summit Entertainment? Is Lionsgate overextendinghere? Time will tell.

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Scott Hallam

  • fceurich39

    lookin forward to the upcoming cabin in the woods movie which mgm once had but lionsgate is now releasing too bad lionsgate couldnt of gotten poughkeepsie tapes out also

  • Caterpillar

    I want Lionsgate to crash and burn. I remember how cool and genuinely excited about horror they were when they started out in the late 90ies and I also vividly remember how that changed right after they bought Artisan Entertainment in 2003. And I will never forget or forgive how they pissed in the faces of people like Clive Barker, Ryuhei Kitamura (MIDNIGHT MEAT TRAIN’s dollar theater release) and Darren Lynn Bousmann (not a fan of REPO but the film deserved more support) for some childish and petty reasons, namely the films being produced by an executive who had left LGF. I’m sure them buying Summit will once again result in bad news for film and genre fans.

  • James Coker

    I dont want Lionsgate to fall, they’ve released so many good horror films in past years…and so many bad ones too