Variety: Lions Gate buying Image Entertainment? - Sitcoms Online Message Boards

Pavan · 09-15-2005, 02:23 PM

Lions Gate in a bid to spruce up Image
Acquisition would deepen company's film library

By SUSANNE AULT, BEN FRITZ

Lions Gate is on the hunt again.

Indie studio has purchased nearly 19% of Image Entertainment's stock with an eye toward a takeover of the Chatsworth, Calif.-based DVD producer and distributor.

In a regulatory filing, Lions Gate revealed it has purchased about 4 million shares of Image stock. Filing included a letter from Lions Gate topper Jon Feltheimer to Image's board in which he said a takeover of the independent DVD supplier would deepen his company's library of filmed entertainment and "add an important musical component to its business."

Lions Gate would also add Image as a label focused on specialty theatrical content if the deal goes through.

Stock-based offer is worth between $81.9 million and $90.6 million based on Wednesday's closing price.

Image has more than 2,800 exclusive DVD titles and 175 exclusive CD titles in domestic release and approximately 300 programs internationally.

In a statement, Image CEO Martin Greenwald said the bid was unsolicited, but his company's board would form a special committee to consider the proposal.

Perhaps looking to goose Lions Gate's bid, he added that "management believes that the value of the company today and in the future is far greater than what is being offered."

Lions Gate has been in an acquisitive mood this year since it paid down most short-term debt from its 2003 acquisition of Artisan.

This past spring it made an unsuccessful $1 billion bid for British kidvid company Hit Entertainment.

In its most recent financial results, Image posted a $1.7 million loss for the three-month period ended June 30. Execs blamed soft sales on a poor DVD market weakened by the absence of big movie titles.

In August, Image acquired Home Vision Entertainment and simultaneously struck an exclusive output deal for the successful esoteric Criterion Collection label.

Shares in Image rose 47% to $4.42 on the news. Lions Gate stock was down 2% to $10.15.

(Additional reporting by Jennifer Netherby. Ault and Netherby are reporters for Daily Variety sister publication DVD Exclusive.)

Dean Winchester · 09-15-2005, 02:42 PM

this sucks for Image.... Lion's Gate is the most notorious DVD company when it comes to edited abonimations

vashti1999 · 09-15-2005, 03:40 PM

Quote:

Originally Posted by pavanbadal

Lions Gate in a bid to spruce up Image

That must mean "spruce up Lions Gates' image" as opposed to sprucing up Image itself. Just judging from what those companies have done with the Saved By The Bell releases (original, College Years and New Class) Image is by far the better company all the way around. If it were Image buying Lions Gate it'd be good news.

Adamantium · 09-15-2005, 04:02 PM

Funny, Image is my favorite DVD company. Lions Gate is my LEAST FAVORITE!!!

09-15-2005, 02:23 PM	#1
Pavan SO News/Reviews Director Administrator Forum Superstar Join Date: Feb 17, 2000 Location: Linden, NJ (Where Hal Linden got his last name from!) Posts: 26,821	Variety: Lions Gate buying Image Entertainment? Lions Gate in a bid to spruce up Image Acquisition would deepen company's film library By SUSANNE AULT, BEN FRITZ Lions Gate is on the hunt again. Indie studio has purchased nearly 19% of Image Entertainment's stock with an eye toward a takeover of the Chatsworth, Calif.-based DVD producer and distributor. In a regulatory filing, Lions Gate revealed it has purchased about 4 million shares of Image stock. Filing included a letter from Lions Gate topper Jon Feltheimer to Image's board in which he said a takeover of the independent DVD supplier would deepen his company's library of filmed entertainment and "add an important musical component to its business." Lions Gate would also add Image as a label focused on specialty theatrical content if the deal goes through. Stock-based offer is worth between $81.9 million and $90.6 million based on Wednesday's closing price. Image has more than 2,800 exclusive DVD titles and 175 exclusive CD titles in domestic release and approximately 300 programs internationally. In a statement, Image CEO Martin Greenwald said the bid was unsolicited, but his company's board would form a special committee to consider the proposal. Perhaps looking to goose Lions Gate's bid, he added that "management believes that the value of the company today and in the future is far greater than what is being offered." Lions Gate has been in an acquisitive mood this year since it paid down most short-term debt from its 2003 acquisition of Artisan. This past spring it made an unsuccessful $1 billion bid for British kidvid company Hit Entertainment. In its most recent financial results, Image posted a $1.7 million loss for the three-month period ended June 30. Execs blamed soft sales on a poor DVD market weakened by the absence of big movie titles. In August, Image acquired Home Vision Entertainment and simultaneously struck an exclusive output deal for the successful esoteric Criterion Collection label. Shares in Image rose 47% to $4.42 on the news. Lions Gate stock was down 2% to $10.15. (Additional reporting by Jennifer Netherby. Ault and Netherby are reporters for Daily Variety sister publication DVD Exclusive.)
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09-15-2005, 02:42 PM	#2
Dean Winchester Member Forum Fanatic Join Date: Sep 28, 2003 Location: Louisville KY Posts: 14,803	this sucks for Image.... Lion's Gate is the most notorious DVD company when it comes to edited abonimations

09-15-2005, 04:02 PM	#4
Adamantium TVAdam No More Forum Veteran Join Date: Sep 11, 2002 Location: Springfield, Ohio Posts: 7,839	Funny, Image is my favorite DVD company. Lions Gate is my LEAST FAVORITE!!!