By acquiring Summit, Lionsgate broadens its 13,000-title film entertainment library to include such titles as The Twilight Saga, The Hurt Locker and Red. The deal also enhance Lionsgate's production and distribution capacity.
The company will now own both Summit's Twilight Saga feature film franchise, which has already grossed more than $2.5 billion at the worldwide box office, and Lionsgate's highly anticipated Hunger Games franchise, which opens on March 23, 2012.
Both the Lionsgate and Summit labels are expected to continue and be active in the production and distribution of films.
"This transaction continues Lionsgate's long-term growth strategy of building a diversified worldwide media company through a combination of disciplined, accretive strategic acquisitions and organic growth while maintaining a solid balance sheet," says Jon Feltheimer, co-chairman and chief executive officer, Lionsgate, and Michael Burns, vice chairman. "We are uniting two powerful entertainment brands, bringing together two world-class feature film franchises to establish a commanding position in the young adult market, strengthening our global distribution infrastructure and creating a scalable platform that will result in significant and accretive financial benefits to Lionsgate shareholders."