Lions Gate Entertainment 'could buy Summit production company'
Two sources have spoken to Reuters about the possibility of a deal between Lions Gate Entertainment and Summit Entertainment.
Los Angeles production company Lions Gate Entertainment could be set to buy industry rival Summit Entertainment in a deal that may require the services of merger and acquisition consultants.
This is according to sources who spoke to Reuters about the transaction, although they admitted there is still a chance it will not go ahead.
If there is an agreement between the two companies, it would be worth around $400 (£259.4 million) and may be announced to the public this week.
Summit produced the hit Twilight movies and award-winning Hurt Locker, while Lions Gate is responsible for popular series Mad Men and horror franchise Saw.
The new company, which would see around $350 million paid in cash to Summit and $50 million offered in stock, would probably be run by current Lions Gate chairman and chief executive officer Jon Feltheimer as well as vice-chairman Michael Burns, an insider told Reuters.
Chief executive of Summit Rob Friedman and co-chairman Patrick Wachsberger are also expected to have top jobs.
Lions Gate last week announced its acquisition of exclusive distribution rights for toy dolls Lalaloopsy.
Posted by Ron Maverick
Source: Reuters, January 8th