Lions Gate Hits Record High on Post-Summit Deal Outlook: Los Angeles Mover
Stock Chart for Lions Gate Entertainment Corp (LGF)
Lions Gate Entertainment Corp. (LGF), the independent studio that bought the producer of the “Twilight” movies, rose to the highest closing price in more than four years after outlining post-purchase plans.
Lions Gate, based in Vancouver, gained 7.5 percent to $11.84 at the close in New York, the highest closing price since June 2007. The company purchased Summit Entertainment, maker of the “Twilight” series, in January.
The deal gave Lions Gate two teen franchises whose popularity is reflected in book buying and, in the case of “Twilight,” in box-office results to date. In March, the studio releases the first of four planned movies from Suzanne Collins’s best-selling “The Hunger Games” novels. In November, Lions Gate will distribute the last “Twilight” film, part of a series with $2.5 billion in ticket sales.
“The deal brings together the two premier young-adult franchises,” Chief Executive Officer Jon Feltheimer said today on a conference call. “We now have a strong pipeline of franchise property.”
Lions Gate is also developing a film based on “Chaos Walking,” a young-adult book series by Patrick Ness, and, through the Summit deal, a picture called “Ender’s Game,” based on the science-fiction novel by Orson Scott Card.
Rob Friedman and Patrick Wachsberger, Summit’s co-chairmen, have been named to comparable posts overseeing Lions Gate’s motion picture group.
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