Director is working on English-language version of Reliance Big Pictures' "Kites."
Lionsgate May Buy Summit
Lionsgate and Summit Entertainment are in talks to merge their two companies, according to two people familiar with the negotiations.
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Disney released a triptych of posters for this spring's "Alice in Wonderland" on Thursday. The posters give audiences a look at Johnny Depp's Mad Hatter, Helena Bonham Carter's Red Queen, Anne Hathaway's White Queen, and Mia Wasikowska's Alice. Take a look at the avant-garde art for Tim Burton's upcoming 3D fantasy flick.
Lionsgate and Summit Entertainment are in talks to merge their two companies, according to two people familiar with the negotiations.
The plan, if the deal goes through, is for Lionsgate to buy Summit’s library of six films and the rights to the “Twilight” franchise. Early talks last year involved the merger of only the domestic divisions, under the terms of the reported deal.
Executives at Lionsgate and Summit declined to comment for this story. But one Lionsgate executive, who declined to speak for attribution, said: “At this time there are no new conversations.”
Rumors of a proposed merger have abounded for months, and other executives familiar with the terms said the deal made sense.
But Lionsgate just paid $255 million to buy the TV Guide Network and TVGuide.com, in a surprise move. So another high-ticket cash deal might be a stretch for the company.
For Summit, the deal would bring a cash payout after nearly two years of operation, with success coming only recently in the “Twilight” phenomenon, which followed a string of heavily-marketed failures. The studio, which was capitalized by investors led by Merrill Lynch with $1 billion over several years, but the terms of access to the capital have not been made public.
For Lionsgate, buying Summit would give the studio the rights to a guaranteed hit franchise which it could spin out for its television and video business. It would also be buying a slate of movies for its lucrative video distribution business.
The buzz of buying a hot franchise like “Twilight” might be just what Lionsgate needs to boost its ailing stock, down to half its value from a year ago.
A merger may also provide Lionsgate with access to a cable distribution deal through Summit’s new pact with Showtime. Lionsgate’s Showtime deal expired at the end of 2008, and its new cable channel – ‘Epix,’ with MGM and Paramount –does not yet have carriage.
After building a reputation for successful horror films, Lionsgate chief Joe Drake now has few movies in the pipeline. The studio’s latest film, the romantic comedy “New In Town,” flopped at the box office this weekend, taking in only $6.75 million. Merging with Summit will give him more movies to fill his distribution pipeline.
The merger would take place in the context of faltering independent studios, which have never been a reliable business in Hollywood. With diminishing outlets for smaller, specialty films, it may make sense for two medium-sized companies with less than robust film slates to join forces during an economic downturn.
“I see it,” said one rival studio executive.
Comments
mirc Says
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Akincia Says
if this means better cgi, more budget, or a possible 4th installment, than we're all for it!!games
Frog Jim Says
News coming down the wire last night about a potential buy-out of Summit Entertainment by Lionsgate has sent shockwaves through the online film community this morning. Namely, everyone seems to want to speculate about what the blood-thirsty Execs. over at Lionsgate might do with Summit’s one and only successful property, Twilight. But first lets clear up some of the facts on the potential Lionsgate buy-out/merger with Summit, as reported by Sharon Waxman over at The Wrap. The deal has allegedly been in the works for some time now, as both studios have seen stock values drop and mid-level films flop at the box office in this unpredictable economic climate. For Summit, 2008’s only success was the frenzied teen-vamp flick Twilight ($186 million domestic gross). cheap web hosting They found no success in the rest of their catalog, including the raunchy comedy Sex Drive ($8.4m domestic) and the fantasy romantic comedy Penelope ($10m domestic).
Lionsgate has had its share of problems as well, finding slim box office reciepts in two comic book properties (Punisher: War Zone and The Spirit) as well as mediocre takes on some of their other high-profile films such as Oliver Stone’s W. and the Friedberg/Seltzer spoof Disaster Movie (which was the first of its kind to gross below $20m). And after the flopping of Lionsgate’s latest comedy New in Town, domain registration which hit theaters this past weekend with a $6.7m opening, it is undoubtedly a studio in need of some change.
HollywoodMogul Says
Come on Sharon!
One hit movie does not a worthwhile acquisition make (though this town loves to think so). TWILIGHT was big. BFD.
If the added allure to Lionsgate in acquiring Summit is the TWILIGHT franchise, I think one proceeds with caution. Is this the next Harry Potter series or a one-off? And what about the other stinkers at Summit? What stain on the balance sheet did those leave? What else besides TWILIGHT is Summit doing well enough to make it an acquisition target?
Of course, knowing that Lionsgate likes to make strategic acquistions to further fatten its home entertainment library, this might seem like a good get (not knowing the financials involved).
But once they get the golden TWILIGHT goose, does Lionsgate understand how to market to 15 year old girls, or are they too hip for the room and sometimes too smart for their own good? A fastball up the middle isn't a bad strategy when it sells tickets, folks. I'm sure the board loves the pretty one-sheets. But they like a prettier balance sheet more.
Not every movie needs to be "edgy". You aren't selling movies to your peers at Katsuya. You're selling to Joe Toyota Corrola and his wife in Wisonsin who love the Two-For-One special at Applebees before hitting the 7:15 screening at AMC Mayfair Mall 18.
My Bloody Valentine was a step in the right direction. The trailers and posters seemed fun, straight forward (what could be more straightforward than a movie poster of an audience watching a fun 3D movie). They spoke to people outside of the NY-LA hipster axis that Lionsgate so much likes to twirl upon. Are they moving in the right direction as the studio evolves?
While we are at it, let's take a moment: Overall, the studio could use some good PG/PG-13 fare. Is anyone over there reading the box office stats?? Hello PAUL BLART, HOTEL FOR DOGS. A perfect example: PUNISHER should never have been remade, let alone as a hard R. Does anyone over 17 care about the PUNISHER? Quality of the movie notwithstanding, did any of the moviegoing public care enough to go to the movie in the first place???
Now the BLARTs and HOTELs of the world arent Lionsgate fare. And to their credit, when given a good project to work on, Lionsgate works it. (I cant wait for the PUSH issues to subside in their favor so they can work their magic). After all, this is the studio that gave us MONSTER'S BALL, that won the Oscar for CRASH (dont be jealous--they won fair and square, thank you very much Academy voters--and dont look so surprised Jack, you got a screener too). But they need to widen their playing field, and hopefully, NEW IN TOWN notwithstanding, they will continue to move in the right direction.
BUNNYTGM Says
personally? i think that if Lions gate bought it then after their latest venture of buying the Tv guide thing the budget will be worse then ever.
The Twilight series needs to be bought bya company that gives them a Bigger budget.
If this is what Lions-gate can offer I say go ahead. If not I think it won't make much difference and wont give a damn unless they lower the budget.
Its not like my favourite movie makers are offering.
hear this Paramount? Buy it and use it because you can afford it!
ehem... yeah thats all.
Olga Says
I think summit would be smart in their own intrests to sell now while they are a hot commodity. Because if they wait till the whole twilight franchise is over and they have no other huge money makers than they wont be worth much. I say they should strike now while the iron is hot!
AnonymousTwilighter Says
If it doesn't ruin the Twilight Saga movies, then ok. But otherwise, I don't like this idea. Summit can be its own company. If it helps make the movies better, then it's worth it, too.
bcullen Says
I don't think Lionsgate should merge with Summit. Thanks to the phenomenal success of "Twilight," Summit has become a bigger and better player than Lionsgate, and Lionsgate's films are mostly horror films, most of which frankly don't do all that well. I'm afraid that the merger with Lionsgate would be a bad influence to the Twilight Saga. I hope the recent $225 mil that Lionsgate just used to buy TV Guide is the only big deal they'll make for a long time to come. Summit's "Push" that is coming out this Friday will also probably do very well, because it has a great cast, and will give the studio another boost. Summit may be a newer player in the studio scene than Lionsgate, but they're now the better one, and should be left alone.
b!X Says
Will this deal help the producers of Twilight come fix the lamp post they vandalized during filming on my street here in Portland that they still have not fixed, nearly a year later?
unintendedchoice Says
as long as it includes rob pattinson.. i'm all for whatever :)
letterstorob.com
letterstotwilight Says
if this means better cgi, more budget, or a possible 4th installment, than we're all for it!!
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