Lionsgate and Summit Talk Merger

Although similar talks have broken down in the past, Lionsgate Entertainment and Summit Entertainment, the independent powerhouses behind ‘Hunger Games’ and Twilight, are discussing joining forces.

Both production and distribution houses are working on the biggest hits in their histories; Summit just released Twilight Saga: Breaking Dawn Part 1, and Lionsgate is soon to release the first part of franchise-hopeful Hunger Games. Previous talks reportedly broke down due to differing opinions on each company’s financial value and who would run the newly combined company after the merger.

The company’s values in the long run are difficult to determine. Summit’s only worldwide hit is Twilight, and with only one more picture left to be released, it is unknown if Summit can continue to create popular franchises. Lionsgate’s most-talked about “hit”, Hunger Games, has yet to even open in theaters, and the box office numbers are not guaranteed to live up to the current hype. Despite Lionsgate’s uncertain film future, the company does have a large and successful stake in television with 15 shows currently on the air including critically acclaimed Mad Men and Weeds.

The vast differences between the two companies’ affairs make it difficult to determine how the merger would be negotiated and the fight to be the one in control of the new company will surely end up in dissolution of the talks once again, much to the delight of the bigger film powerhouses.

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image via: mjbstar.com

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