Lionsgate to Pay $700 Million to Buy Summit

Lionsgate is nearing a deal to purchase Summit Entertainment. The Wrap confirms that Lionsgate will buy the studio for $700 million. $400 million of that will be a cash payment, while the rest will be the assumption of Summit's debt. Colony Capital is also circling the indie studio, but Lionsgate looks as though it will beat them out. 

The deal is not complete, but should be finalized before the middle of next week. Summit Co-Chairmen Rob Friedman and Patrick Wachsberger will remain on board. Friedman would oversee domestic operations and Wachsberger handling international. This is not the first time that the studios have been in negotiations, but talks have always broken down because the two entities could not agree on control.

This deal makes a lot of sense to me, especially with The Twilight Saga ending and The Hunger Games beginning. I will be interested to see what happens with the marketing departments during this merger. No matter what you think of Twilight, you have to give them some credit for their marketing. What are your thoughts on this merger?

Follow @Jim_Napier