Lions Gate Entertainment Corp. (LGF) recently announced a new multiyear Output agreement with Nordisk Film. The deal is an extension of the prior agreement between Nordisk and Summit, which Lions Gate recently acquired. Nordisk will now distribute titles of both Summit Entertainment and Lions Gate in Scandinavia.
Summit Entertainment, the maker of the ‘Twilight’ series, was acquired for $412.5 million to supplement Lions Gate’s production and distribution capacity. The company constantly seeks strategic acquisitions and alliances to enhance its competitive position, maximize return and build a diversified portfolio for future growth.
Lions Gate’s crown jewel is its library of approximately 13,000 motion picture titles, television episodes and programs. Therefore, the acquisition will not only build on its distribution capabilities, but will also expand its stock of feature film and home entertainment offerings.
Earlier, Lions Gate entered into a television partnership with Thunderbird Films to produce programs in a cost effective manner, and facilitate the ongoing diversification of its television business. Both Lions Gate and Thunderbird Films remain highly enthusiastic about their partnership, which encompasses many exciting projects in its periphery.
Founded in 1986 and headquartered in Vancouver, Canada, Lions Gate Entertainment Corporation (LGF) 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).
Lions Gate retains a Zacks #2 Rank that translates into a Buy rating over the next 1-3 months, reflecting the strategic endeavors undertaken by the company to put itself on the right path.
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