Lionsgate and Summit Closing in on Merger
Talk had surfaced a couple of months ago about a merger of Lionsgate and Summit and now Deadline has the scoop that Lionsgate is close to cinching a deal that would absorb Summit Entertainment into Lionsgate and considering the political climate within, Summit would likely then cease to make movies. It’s quite surprising that the deal is pointed that way considering the mega success of the Twilight franchise.
What a shame for Summit that’s had so much success. It’s hard to believe it ended up a takeover target since it was sitting on so much cash that it had hired an investment bank to help it expand by acquiring other companies and even getting into television. But none of that came to pass.
Wachsberger and Friedman owned 30% of privately owned Summit and investors owned the other share, including Rizvi Traverse Management which had a lions share, and everyone was eager to see a payday.
The common belief is that Summit was struck by lightning with the success of the Twilight saga franchise but that”s now coming to an end with Breaking Dawn Part 2 debuting in November. So this was the right time for everyone connected with Summit to score a windfall.