Lions Gate Entertainment Corp. (LGF) announced the reorganization of its international film operations to integrate the operations of Summit Entertainment, which it acquired earlier this year.
The leading global entertainment company, Lions Gate, had to shell out $412.5 million to acquire Summit Entertainment, the maker of ‘Twilight’ series. Patrick Wachsberger, Lionsgate Motion Picture Group’s Co-Chairman will head the operations as the division’s former head, Helen Lee Kim, has decided to leave later this year.
Lions Gate keeps itself busy in strategic acquisitions and alliances to enhance its competitive position, maximize return and build a diversified portfolio for future growth. The string includes companies like Artisan, Debmar-Mercury, Trimark, Redbus, TV Guide Network and Mandate.
Lions Gate’s crown jewel is its library of approximately 13,000 motion picture titles, television episodes and programs, and the acquisition of Summitfurther expands its filmed entertainment library while boosting its feature film and home entertainment offerings.
Further, the company added that its production and distribution capacity will be supplemented by the integration of Summit's film operations. In addition, it will also help Lions Gate to emerge as a leading international sales group by broadening its global reach.
Moreover, the acquisition will bring in noteworthy monetary benefits for the company including Summit’s rich cash flows and revenues.
The company added that the buyout strengthens its position and is expected to be notably accretive to its earnings in fiscal 2013.
Founded in 1986 and headquartered in Vancouver, Canada, Lions Gate Entertainment Corporation is a film studio, producing and distributing motion pictures for theatrical and straight-to-video release, and television programming for the cable and broadcast networks.
To grab its share of box office receipts, Lions Gate competes with other major studios, such as Fox Entertainment Group, Paramount Motion Pictures Group and Time Warner Inc. (TWX).
Currently, Lions Gate retains a Zacks #2 Rank, which translates into a short-term ‘Buy’ rating. However, considering the company’s fundamentals, we have a long-term 'Underperform' recommendation on its shares.Read the Full Research Report on TWX
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