A month ago we learned that Summit was in talks to be purchased by another similarly-sized studio.
Today, an update: The talks are still ongoing but a deal will not be completed by the end of 2011 like hoped.
Reports The Los Angeles Times:
Executives at Summit had hoped to close a deal by the end of the year because of certain tax and financial advantages, two of the people said, but that has virtually no chance of happening by Saturday.
Instead, talks with both parties have slowed down during the holiday season and are expected to pick back up next week. Summit is likely still looking to close a deal as soon as possible, as it is currently in a good position with one more “Twilight” sequel yet to be released and a significant pile of cash that, one knowledgeable person said, will be distributed to investors in the event of a sale.
Both Lions Gate and Colony are said to be offering about $350 million to $400 million to acquire Summit, along with the assumption of roughly $200 million in debt.
We’re eager to see if it ends up being Summit and Lionsgate who merge, as both have major book-to-film franchises (Twilight and The Hunger Games respectively) on their hands!
We want to hear your thoughts on this topic!
Write a comment below or submit an article to Hypable.