It’s official, Lionsgate has acquired Summit Entertainment. Lionsgate closed its leveraged buyout of Summit in a deal for $412.5 million in cash and stock and the assumption of Summit’s $500 million debt reports Reuters.
This brings together two of Hollywood’s biggest mini-majors into an entity which will now control the “Twilight” franchise, the upcoming “The Hunger Games” franchise, and various major TV shows such as “Mad Men” and “Boss”.
Lionsgate says it anticipates repaying the debt well before its 2016 due date thanks to significant cash flow expected from various films – most notably “The Twilight Saga: Breaking Dawn: Part 2”. In fact Lionsgate has already talked about plans of potentially continuing the “Twilight” franchise beyond that upcoming finale.
Lionsgate and Summit’s production, domestic distribution and international sales divisions are all expected to be brought into one organization.