Post by Mr.HoRrOr on Jan 29, 2012 13:52:40 GMT -5
Looks like the recent purchase of Summit Entertainment by Lionsgate was driven possibly by "blood money". Not literally, but in the sense that the huge bank that the "Twilight" films have made for Summit, were essential to the two sides striking a deal. This, according to THR. Who report that the recent deal, in which LGF bought Summit for approximately $412.5 million dollars, was basically Lionsgate lending Summit cash to help them continue to operate until 2016. In exchange for assisting them with their debt, Lionsgate will get a sizeable slice of the "Twilight" franchise money. Which includes box office receipts of the forthcoming "The Twilight Saga:Breaking Dawn:Part 2". That opens this November 16th.
"The Twilight cash flows (discounted) are worth nearly $900 million to Lionsgate and even assuming a negative return on the remaining Summit slate, the deal is positive from an [net present value] perspective, in our view." Writes Stifel, Nicolaus' Entertainment analyst Ben Mogil. As for the genre itself, it'll be interesting to see what these two can cook up together, as far as horror films go in the near future!
"The Twilight cash flows (discounted) are worth nearly $900 million to Lionsgate and even assuming a negative return on the remaining Summit slate, the deal is positive from an [net present value] perspective, in our view." Writes Stifel, Nicolaus' Entertainment analyst Ben Mogil. As for the genre itself, it'll be interesting to see what these two can cook up together, as far as horror films go in the near future!