CBS Corporation Agrees To Buy Lionsgate Entertainment
CBS Corporation (CBS) announced on Monday that it had agreed to buy Lionsgate Entertainment , a leading global entertainment company based in Santa Monica, CA, for $6.05 billion. Under the terms of the buyout, CBS will pay Lionsgate shareholders $44.75 a share, 88 percent above the closing price on Friday.
“Partnering with CBS Corporation delivers a significant premium for Lionsgate shareholders and ensures a strong foundation for us to continue our expansion,” Jon Feltheimer, the company’s co-chairman and chief executive, said in a statement. “Our board firmly believes that this transaction is in the best interests of all of our stakeholders.” Mr. Feltheimer is expected to remain in his role after the completion of the deal.
CBS Corporation operates as a mass media company in the United States and internationally. It operates in five segments: Entertainment, Cable Networks, Publishing, Local Broadcasting, and Outdoor Americas. The Entertainment segment distributes a schedule of news and public affairs broadcasts, and sports and entertainment programming; produces, acquires, and distributes programming, including comedy and drama series, reality-based programming, specials, children's programs, daytime dramas, game shows, and late-night programs; produces and distributes theatrical motion pictures; and operates online content networks for information and entertainment. CBS Corporation was founded in 1986 and is headquartered in New York, New York.
Lionsgate is entitled to a 45-day so-called go-shop period, when it can seek competing bids from other buyers. The company expects the deal to close in the second quarter. The $44.75 per share offer is an 88 % premium to Lionsgate's closing price Friday (LGF) of $23.77.
Wanna, I couldn't resist, considering the timing and all. Last year one of my stocks received a buyout offer and I simply used the press release as a template. At least you were a good sport about it! Here's hoping for the real thing real soon!
What have hedge funds been doing with Lions Gate Entertainment Corp. (USA) (NYSE:LGF)?
At the end of the fourth quarter, a total of 15 of the hedge funds we track were long in this stock, a change of -17% from the previous quarter. With hedgies' capital changing hands, there exists an "upper tier" of notable hedge managers who were increasing their holdings substantially.
When looking at the hedgies we track, Alydar Capital, managed by John Murphy, holds the most valuable position in Lions Gate Entertainment Corp. (USA) (NYSE:LGF). Alydar Capital has a $63 million position in the stock, comprising 4.9% of its 13F portfolio. Sitting at the No. 2 spot is Tremblant Capital, managed by Brett Barakett, which held a $24 million position; the fund has 1.1% of its 13F portfolio invested in the stock. Other peers that are bullish include Stuart Peterson's Artis Capital Management, Phill Gross and Robert Atchinson's Adage Capital Management and Malcolm Fairbairn's Ascend Capital.
Due to the fact that Lions Gate Entertainment Corp. (USA) (NYSE:LGF) has witnessed a declination in interest from the smart money logic holds that there is a sect of money managers that elected to cut their entire stakes heading into 2013. At the top of the heap, Mark Rachesky's MHR Fund Management sold off the largest stake of the 450+ funds we monitor, worth about $783 million in stock.. Christopher Lord's fund, Criterion Capital, also said goodbye to its stock, about $8 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 3 funds heading into 2013.