Having filed a formal proposal to merge with Metro-Goldwyn-Mayer Studios on Tuesday, Lionsgate's top executive released a statement Wednesday outlining what they believe are the benefits of the proposed deal.
"This is a unique, once-in-a-lifetime opportunity to create a dynamic, forward-looking studio that unlocks tremendous potential value for Lionsgate's shareholders and MGM's various stakeholders," said Lionsgate co-chairman and CEO Jon Feltheimer and vice chairman Michael Burns, in a joint statement.
"A Lionsgate merger with MGM is a natural fit that would bring together two of the most powerful libraries in the world, create significant cost savings, consolidate our mutual global channel operations and generate significant incremental revenue and cash flow," the statement added. "It would create a combined entity with enough scale to leverage all of our distribution platforms worldwide."
In seeking their proposed merger, Lionsgate seems to have backing from its most powerful shareholder, Carl Icahn, who is currently working to undermine an earlier-proposed bid by Spyglass Entertainment to buy MGM.
