Colony Capital Said in Talks for Stake in Summit Entertainment
Colony Capital LLC, owner of the Miramax film library, is in talks to acquire a stake in Summit Entertainment LLC, maker of the “Twilight” vampire movies, two people with knowledge of the situation said.
Colony, the private-equity firm led by Tom Barrack, initially sought the stake in Summit held by hedge fund Rizvi Traverse Management LLC and others, said one of the people, who declined to speak publicly because the talks are preliminary. The parties are also discussing combining Summit and Miramax, leaving Summit management in charge, the people said.
The Colony interest creates competition for Lions Gate Entertainment Corp. (LGF), which is in talks to acquire Summit. Lions Gate, the studio behind “Saw” and the Tyler Perry comedies, resumed discussions with Summit that broke down in the past over price and control issues, three people with knowledge of the situation said this week.
The talks with Colony were reported yesterday by Deadline Hollywood.
Miramax, the maker of “Shakespeare in Love” and “The English Patient,” was acquired by Colony one year ago for $660 million from Walt Disney Co. (DIS) The studio, which stopped making new movies, has been licensing its library of films to distributors including Netflix Inc. (NFLX)
Kristin Celauro, an outside spokeswoman for Colony, said the company doesn’t comment on speculation or rumor. Melissa Zukerman, an outside spokeswoman for Summit, declined to comment.
Miramax sold $500 million of debt on Dec. 1, including $142 million to pay a dividend to its owners.
Summit refinanced its debt in March, raising $750 million in term and revolving loans and paying a dividend to its investors.
To contact the editor responsible for this story: Anthony Palazzo at email@example.com