Lions Gate Entertainment (NYSE:LGF) is close to cementing a deal to acquire the studio that made blockbuster series “Twilight” for $400 million in cash and stock, according to The Associated Press.
The talks to acquire Summit Entertainment are apparently in late stages and could be finalized this week, two people said in the report on condition of anonymity.
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While Summit has about $300 million in debt linked to its movies, the money is expected to be paid off quickly after the last movie in the Twilight series, “The Twilight Saga: Breaking Dawn Part 2,” hits theaters in November.
The acquisition would make Lions Gate one of the biggest studios in Hollywood, bringing under one roof “Twilight” and expected blockbuster series “The Hunger Games,” which Lions Gate plans to release in March.
Both studios are located in Santa Monica, Calif.
Lions Gate already has a strong TV studio, known for popular shows such as “Mad Men,” “Weeds,” and “Nurse Jackie,” however it was distracted by a lengthy shareholder battle with activist investor Carl Icahn, who sold most of his shares last year.