Lionsgate

Lions Gate Entertainment Corp.
Lionsgate
Public
Traded as NYSE: LGF.A (voting)
NYSE: LGF.B (non-voting)
Industry Entertainment
Television broadcasting
Predecessor Berringer Gold Corp.
Artisan Entertainment
Trimark Pictures
Founded July 10, 1997 (1997-07-10) in Vancouver, British Columbia, Canada[1]
Founder Frank Giustra
Headquarters Santa Monica, California, United States
Area served
Key people
 Mark Rachesky (Chairman)
Jon Feltheimer (CEO)
Michael Burns
(Vice Chairman)
Services Film production
Video on demand
Entertainment
Broadcast programming
Digital distribution
Revenue Decrease US$2.4 billion (2015)[3]
Decrease US$222.2 million (2015)[3]
Increase US$181.8 million (2015)[3]
Total assets Increase US$3.292 billion (2015)[3]
Total equity Increase US$842 million (2015)[3]
Owners Mark Rachesky (18.7%)[4]
John C. Malone (7.88%)
Liberty Global (3.08%)
Discovery Communications (3.08%)[4]
AT&T (~2%)[5]
Number of employees
 1,400+ (2017)[6]
Divisions
Subsidiaries
Website lionsgate.com

Lions Gate Entertainment Corporation,[12] doing business as Lionsgate, is an American, Canadian-domiciled entertainment & media company. The company was formed on July 10, 1997, in Vancouver, British Columbia, and is currently headquartered in Santa Monica, California.[13][14]

In addition to its well-known Lionsgate Films division, which generated the seventh-highest gross revenue in North America in 2015, the company contains other divisions such as Lionsgate Television and Lionsgate Interactive.[15] It owns a variety of subsidiaries such as the American film production company Summit Entertainment, and Debmar-Mercury, a television syndication company acquired by Lionsgate in 2006.

History

Early history

Lions Gate Entertainment Corporation (Lionsgate) was formed in 1997 by Frank Giustra and Avi Federgreen with a $16 million investment including another $40 million from other investors which included Keyur Patel and Yorkton Securities' executives such as G. Scott Paterson.[16] Giustra had recently retired as CEO from Yorkton, an investment bank, and Paterson was then President. Giustra then merged Lionsgate with Toronto Stock Exchange listed Beringer Gold Corp. (founded in 1986) to take the company public. Beringer's mining assets were soon sold off.[14][17][18]

Acquisitions

Lionsgate then began a series of acquisitions to get into the film industry. The company bought a number of small production facilities and distributors, starting with Montreal-based Cinépix Film Properties (renamed as Lions Gate Films) and North Shore Studios (renamed Lions Gate Studios) in Vancouver, British Columbia. Mandalay Television was acquired by Lionsgate from Peter Guber for a 4% Lionsgate stake. In 1998, Lionsgate helped Guber form Mandalay Pictures with a 45% investment in Mandalay. Lionsgate followed that up with a June purchase of International Movie Group, Inc. (IMG), a bankrupt film distributor previously invested in by Guber and Yorktown Securities, for its film library. IMG's CEO Peter Strauss became president of Lions Gate Entertainment, Inc. (LGE), Lionsgate's U.S. film & TV production & distribution subsidiary. Lions Gate Media subsidiary was also formed to produce for television.[17]

Completing its first year of operation, Lionsgate had revenue of $42.2 million with loss of $397,000. The company share price dropped to a low of $1.40. This limited the corporation's ability to make acquisitions via stock swaps. Lionsgate instead made its next acquisition of Termite Art Productions, a reality-based television production company, for $2.75 million by issuing three convertible promissory notes. Giustra had the shareholders vote to move the company's public listing from the Toronto Stock Exchange to the American Stock Exchange, along with a two-for-one stock consolidation to qualify, for greater exposure that might boost share value.[17]

In January 1999, Roman Doroniuk was named president and chief operating officers of Lionsgate, which led to the corporation's financial operations being moved in April to Doroniuk's offices in Toronto while corporate headquarters remained in Vancouver. Lionsgate created US based Avalanche Films and acquired half of Sterling Home Entertainment, both in video sales. Again, Lionsgate registered losses in its second year of $9.3 million on revenues of $78.3 million with most of the losses were from its stake in Mandalay Pictures. Thus in the summer, Lionsgate placed its studios up for sale with no buyers. TV operations were changed to non-network hourlong series over riskier network shows and ended its relationship with Mandalay Television. The corporation sought out more capital and cash with a filing of a preliminary prospectus for the sale of preferred stock and common stock warrants and a $13.4 million line of credit.[17]

Lionsgate increases and new CEO

Additional acquisition funding arrived in January 2000 as a $33.1 million investment from an investor group that included Paul Allen, former Sony Pictures executive Jon Feltheimer, German broadcasting company Tele-Munchen, and SBS Broadcasting SA. This led to Feltheimer taking over as CEO from Giustra thus the passed over Doroniuk left the company. Feltheimer increased film making including several $1 million films at Avalanche. However, Federgreen still remains one of the major owners of the company and is extremely involved in the making of all their major movies. In June, Lionsgate acquired Trimark Holdings, Inc. for approximately $50 million in stock and cash including taking on $36 million in debt.[17]

Lionsgate continued making acquisitions during the decade to boost distribution and its film library. On December 15, 2003, Lionsgate acquired Artisan Entertainment for $220 million.[19] In 2004, Erik Nelson reacquired Termite Art and renamed it to Creative Differences.[20]

Lionsgate partnered with Panamax Films in 2005 to make movies for the Latino market which only produced two films.[21] On April 13, 2005, Lionsgate spun off its Canadian distribution unit into a new distribution unit called Maple Pictures under the direction of two former Lionsgate executives, Brad Pelman and Laurie May.[22][23][24] On August 1, 2005, Lions Gate Entertainment acquired the entire library of Modern Entertainment, the U.S. film division of the Swedish television company Modern Times Group.[25][26] On October 17, 2005, Lionsgate acquired UK company Redbus Film Distribution for $35 million[27][28][29] and became Lionsgate UK on February 23, 2006.[30][31]

On March 15, 2006, Lionsgate sold Lionsgate Studios to Bosa Development Corporation.[32] On July 12, Lionsgate purchased Debmar-Mercury, an independent television distributor, which has continued operations as a Lionsgate subsidiary.[33] The company agreed in August to lease term with New Mexico State Land Office and the city of Rio Rancho for a new 52.8 acres studio near Rio Rancho's under construction city center and arena.[34]

On July 26, 2007, Lionsgate bought a partial stake in independent film distribution company Roadside Attractions.[35] Lionsgate started up Lionsgate Music by June 2007.[36] On September 10, 2007, Lionsgate bought Mandate Pictures for $56.3 million, $44.3 million in cash and $12 million in stock, and taking on $6.6 million of Mandate's debt. Mandate Chief Executive Joe Drake returned to the company as co-chief operating officer of its film unit.[37]

By July 2008, Lionsgate has not made any progress on building its new film studio in Rio Rancho or on setting up the corporation to run the studio per its agreement with New Mexico.[38]

In January 2009, Lionsgate purchased TV Guide Network and TVGuide.com from Rovi for $255 million cash.[39] In May 2009, Lionsgate sold a 49% stake in TV Guide Network and website to One Equity Partners under pressure from shareholder Carl Icahn.[40]

Lionsgate cut back its slate of films per year by four in February 2009. In April, Relativity Media signed with Lionsgate for a 5 picture per year multi-year film distribution.[41] In August, Lionsgate signed with Redbox for a five-year same day release deal worth $158 million.[42] Lionsgate, along with MGM and Paramount Pictures/Viacom, is also a co-owner of Epix, a pay TV movie channel which debuted on October 30.[43][44]

On September 13, 2010, Lionsgate and Televisa formed a joint venture, Pantelion Films, to produce for the next five years eight to 10 films a year targeted for the U.S. Latino market.[21]

Lionsgate sold off its Canadian distribution unit, Maple Pictures, in September 2011 to Alliance Films.[45]

Lionsgate announced on January 13, 2012, that it had acquired Summit Entertainment, producers and distributors of the Twilight Saga films, for $412.5 million.[46] The two companies have planned on merging since 2008.[47] On October 6, 2012, Lions Gate Entertainment announced that Brian Goldsmith became the co-COO of the company and joining co-COO Steve Beeks.[48] On November 18, 2012, Lionsgate announced it has passed over the $1 billion mark for the first time with the success of The Hunger Games and The Twilight Saga: Breaking Dawn – Part 2.[49]

On December 23, 2013, Lionsgate announced they have crossed over $1 billion domestically and internationally for the 2nd year in a row with the success of The Hunger Games: Catching Fire, Now You See Me, Instructions Not Included, and Kevin Hart: Let Me Explain.[50][51]

On April 14, 2014, Comcast acquired the remaining stakes in Fearnet from LGF and Sony Pictures Entertainment.[52] On April 21, 2014, Lionsgate announced that they will merge its movie marketing operations.[53] A few days later, on April 30, Lionsgate announced that the studios will expand into the gaming development.[54]

On February 11, 2015, John C. Malone swapped a 4.5% stake with 14.5% of the voting power in Starz Inc. for 3.4% of Lionsgate’s shares while joining the company's board of directors.[55][56] Fourteen days later, Starz CEO Chris Albrecht hinted a possible merger with Lionsgate.[57]

On April 1, 2015, according to Deadline, Lionsgate announced it has created its new label, Lionsgate Premiere. This new label will handle up to 15 releases a year, targeting young audiences at theaters and digital outlets. The new label, part of the company’s diversification effort, will incorporate Lionsgate and Summit Entertainment titles (including the Step Up film series and the Red film series) and then specialize in “innovative multiplatform and other release strategies” to reach “affinity audiences with branded content and targeted marketing.” Marketing and Research SVP Jean McDowell will handle marketing, with distribution to be run by Adam Sorensen, who currently manages Western Sales.[58]

On November 10, 2015, Malone's other two companies, Liberty Global and Discovery Communications, made a joint investment of $195-400 million in Lionsgate and acquired a 3.4% stake in the company.[59][60][61][62][63] Then on June 30, 2016, Lionsgate agreed to acquire Starz Inc. for $4.4 billion in cash and stock.[64] As of December 2016, it became the parent company of Starz Inc.[65]

On July 13, 2016, Lionsgate acquired a minority stake in startup company Primal Media. It was launched by Matt Steiner and Adam Wood, who originally launched Gogglebox Entertainment that was acquired by Sony Pictures Television.[66]

Films

Aside from home video distribution of films sub-licensed from other studios, Lionsgate's library consists of films from the respective companies Lionsgate succeeded-in-interest, such as Trimark Pictures, Vestron Pictures, and Artisan Entertainment, in addition to their in-house material. Their complete ownership depends on the worldwide regions of license.

Television

Lionsgate Television produced such series as Nashville, Anger Management, The Dead Zone, Five Days to Midnight, Weeds, Nurse Jackie, Boss, Tyler Perry's House of Payne and the Emmy Award-winning Mad Men. Lionsgate also acquired TV syndication firm Debmar-Mercury in 2006[67] with 20th Television handling ad-sales with the exception for Meet the Browns, as the ad-sales are handled by Disney–ABC Domestic Television and Turner Television co-distributing the series. Lionsgate also co-owns Pop with CBS Corporation. In March 2013, Lionsgate signed with Mars One (a Dutch nonprofit with space agency and aerospace backers intent on colonizing Mars) to produce a reality TV show.[68]

Video

Lionsgate has a home video library of more than 13,000 films with all of the former Artisan Entertainment releases (many the result of output deals with other defunct studios such as Vestron Pictures), including such titles as Dirty Dancing, Earth Girls Are Easy, Army of One, Total Recall, On Golden Pond, The Hunger Games: Catching Fire and the Rambo series. Lionsgate also distributes select NBC programs such as Will & Grace, Little House on the Prairie and The Biggest Loser; Mattel's Barbie-branded videos and Clifford the Big Red Dog videos from the Scholastic Corporation and was also the former home video distributor of HIT Entertainment titles, including Barney & Friends, Thomas & Friends, and Fraggle Rock.

Video properties currently owned by Lionsgate Home Entertainment include those from Family Home Entertainment, Vestron Video, Lightning Video (a former Vestron company), and Magnum Entertainment. Lionsgate also has a home video deal with StudioCanal in the US on selected titles in their library (most of which were previously released by Anchor Bay Entertainment).

Record label and music publishing

Lionsgate possesses its own record label and music publishing company, Lionsgate Records and Publishing. Lionsgate Records and Publishing established a joint venture with music publishing company Sony Music Australia.[69]

Lionsgate Interactive

Lionsgate Interactive is the video game development division of Lionsgate.[70] It was created in April 2014 and is headed by Nerdist Industries co-founder Peter Levin.

See also

References

  1. ↑ Agency, RED Interactive. "Corporate". www.lionsgate.com.
  2. ↑ Agency, RED Interactive. "Corporate". www.lionsgate.com.
  3. 1 2 3 4 5 "2015 Annual Report" (PDF). Lionsgate. 2015. p. 34.
  4. 1 2 "Lions Gate Entertainment Corp. (USA) company information". Retrieved April 24, 2017.
  5. ↑ "Starz Accepts Rate Cut As Lionsgate Offers Stock For New Deals With AT&T". Deadline. Retrieved August 2, 2017.
  6. ↑ Agency, RED Interactive. "Corporate". www.lionsgate.com.
  7. ↑ Lieberman, David (May 2, 2016). "Lionsgate Partners With Execs At Film Initiative Targeting Global Local Markets". Deadline. Retrieved November 1, 2016.
  8. ↑ http://variety.com/2014/digital/news/defy-media-acquires-viacom-digital-game-assets-1201216394
  9. ↑ http://variety.com/2016/biz/news/starz-lionsgate-merger-john-malone-interests-1201807529/
  10. ↑ "San Diego Comic-Con announces Comic-Con HQ streaming service". Comic Book Resources. Retrieved April 29, 2017.
  11. ↑ "Artsy movies finally get their time in the sun with Tribeca Shortlist, which is like 'Netflix for indies'". Mashable. Retrieved April 29, 2017.
  12. ↑ "Form 10Q". NASDAQ. November 8, 2016. Retrieved November 19, 2016.
  13. ↑ "Lionsgate Investors". Lions Gate. Retrieved November 17, 2007.
  14. 1 2 "Lionsgate" Lionsgate Investors http://investors.lionsgate.com "Retrieved on May 23, 2012"
  15. ↑ "2015 Market Share and Box Office Results by Movie Studio". Box Office Mojo. Retrieved April 20, 2016.
  16. ↑ "Lions Gate Entertainment Corporation – United States Securities Commission Filing". United States Securities and Exchange Commission. Retrieved July 11, 2014.
  17. 1 2 3 4 5 "Lions Gate Entertainment Corporation – Company History". Funding Universe. Retrieved October 14, 2011.
  18. ↑ Equity, Zacks (April 13, 2012). "Lions Gate Reorganizes Operations - Yahoo! Finance". Finance.yahoo.com. Retrieved September 9, 2012.
  19. ↑ Waxman, Sharon (December 16, 2003). "With Acquisition, Lions Gate Is Now Largest Indie". The New York Times. Retrieved July 20, 2013.
  20. ↑ "2008 Panelist Bios: Dave Harding". The Faculty Seminar. Academy of Television Arts & Sciences. Retrieved March 5, 2013.
  21. 1 2 "Lions Gate forms Latino film venture with Televisa". Los Angeles Times. September 13, 2010. Retrieved March 4, 2013.
  22. ↑ "Market News" Lions Gate Forms Maple Pictures Spin Off marketnews.ca, Retrieved on July 20, 2013
  23. ↑ Vlessing, Etan (April 28, 2011). "Lionsgate Sale of Maple Pictures Stake in the Works". Hollywood Reporter. Retrieved March 4, 2013.
  24. ↑ Lions Gate spins off Canadian distribution, production screendaily.com, Retrieved on July 20, 2013
  25. ↑ "Indiantelevision.com" Lions Gate Entertainment acquires movies from Modern Entertainment indiantelevision.com, Retrieved on June 14, 2012
  26. ↑ "Modern Entertainment sells titles to Lions Gate". L.A. Biz. July 14, 2005. Retrieved March 3, 2013.
  27. ↑ Lions Gate Entertainment (October 18, 2005). "Lions Gate Entertainment Acquires Leading UK Filmed Entertainment Distributor Redbus Film Distribution Limited". Retrieved August 12, 2015.
  28. ↑ "Slaughter and May - Redbus - Sale of Redbus Film Distribution to Lions Gate Entertainment". Retrieved August 12, 2015.
  29. ↑ Verrier, Richard (October 19, 2005). "Lions Gate Acquires Film Distributor Redbus". Los Angeles Times. Retrieved March 3, 2013.
  30. ↑ "Screen Daily" Redbus rebranded as Lionsgate UK screendaily.com, Retrieved on June 15, 2012
  31. ↑ "Variety" Redbus now Lionsgate variety.com, Retrieved on June 15, 2012
  32. ↑ "Lionsgate and Bosa Development Corporation Announce Sale of Lionsgate's Vancouver, BC, Studio Facilities to Bosa for $41.6 Million CDN ($36.1 Million U.S.)". Public release. Lionsgate. Retrieved March 5, 2013.
  33. ↑ "Lionsgate buys TV distributor Debmar-Mercury". International Business Times. July 12, 2006. Retrieved March 3, 2013.
  34. ↑ "Rio Rancho, state agree on home for Lionsgate studio". Albuquerque Business First. August 14, 2006. Retrieved March 5, 2013.
  35. ↑ Britt, Russ (July 26, 2007). "Lions Gate acquires stake in distribution company". Marketwatch.com. Retrieved March 4, 2013.
  36. ↑ "Lionsgate Music Promotes Lenny Wohl :: Film Music Magazine". Filmmusicmag.com. March 26, 2008. Retrieved October 8, 2010.
  37. ↑ "Lions Gate buys Mandate Pictures for $56.3 million". Los Angeles Times. Bloomberg News. September 11, 2007. Retrieved March 3, 2013.
  38. ↑ Rayburn, Rosalie (July 20, 2008). "City's Deal With Studio in Limbo". Albuquerque Journal. Retrieved March 5, 2013.
  39. ↑ Eller, Claudia (January 6, 2009). "Lionsgate to acquire TV Guide Network and TVGuide.com". Los Angeles Times. Retrieved March 3, 2013.
  40. ↑ Eller, Claudia (May 29, 2009). "Lions Gate sells a 49% stake in TV Guide cable channel and website". Los Angeles Times. Retrieved March 3, 2013.
  41. ↑ "Lions Gate, Relativity ink distribution deal". Seattle Times. April 27, 2009. Retrieved March 4, 2013.
  42. ↑ Fritz, Ben (August 12, 2009). "Lions Gate cuts a deal with Redbox on DVD rentals". LA Times. Retrieved March 4, 2013.
  43. ↑ Goetzl, David (December 12, 2008). "New Pay TV Channel Picks Epix, Brand Will Rival HBO, Showtime". Media Post.com. Retrieved July 18, 2012.
  44. ↑ Epix Picks a Launch Date NewTeeVee.com October 13, 2009
  45. ↑ Vlessing, Etan (August 10, 2011). "Alliance Films Takes Maple Pictures From Lionsgate". Hollywood Reporter. Retrieved March 4, 2013.
  46. ↑ It's Official: Lionsgate Has Acquired Summit Entertainment for $412.5 Million, ComingSoon.net, January 13, 2012. Retrieved January 13, 2012.
  47. ↑ Waxman, Sharon, Lionsgate May Buy Summit, The Wrap, February 1, 2009. Retrieved August 22, 2010.
  48. ↑ "Wall Street Cheat Sheet" Will Lions Gate Entertainment’s Top Institutional Shareholders Support This Management Change? wallstcheatsheet.com, Retrieved on October 9, 2012
  49. ↑ "Hollywood Deadline" Lionsgate Passes $1B Domestic For First Time Helped By Summit’s Twilight Finale deadline.com, Retrieved on November 19, 2012
  50. ↑ ANITA BUSCH "Deadline" ‘Catching Fire,’ ‘Now You See Me’ Drive Lionsgate To Become Billion Dollar Baby 2nd Year Running; Company Box Office Take To Date: $2.25 Billion Worldwide deadline.com, Retrieved on December 23, 2013
  51. ↑ "ComingSoon.net" Lionsgate crosses a Billion Dollars Both Domestically and Internationally comingsoon.net, Retrieved on December 23, 2013
  52. ↑ Andreeva, Nellie (April 14, 2014). "Comcast Takes Full Control Of FEARnet, To Fold It In Into Chiller & Syfy". Deadline Hollywood. Retrieved April 14, 2014.
  53. ↑ McNary, Dave (April 17, 2014). "Nancy Kirkpatrick Out as Lionsgate, Summit Merge Marketing Operations". Variety. Retrieved February 11, 2015.
  54. ↑ Lionsgate expanding into video games under Nerdist co-founder's lead Alexa Ray Corriea polygon.com April 30, 2014, Retrieved on July 2, 2014
  55. ↑ Farrell, Maureen (February 11, 2015). "Malone, Starz, and Lions Gate Join Forces". Wall Street Journal. Retrieved February 12, 2015.
  56. ↑ Lionsgate, Starz Swap Stock as John Malone Joins Board Brent Lang variety.com February 11, 2015, Retrieved on February 26, 2015
  57. ↑ Starz CEO Albrecht Hints at Possible Merger With Lions Gate Jeff Berman thestreet.com February 25, 2015, Retrieved on February 26, 2015
  58. ↑ David Lieberman. "Lionsgate Introduces Distribution Unit To Target Next-Gen Audiences". Deadline. Retrieved August 12, 2015.
  59. ↑ "What’s Next for Lionsgate and Liberty Global?". Variety. November 10, 2015. Retrieved August 16, 2016.
  60. ↑ "Lionsgate Strengthens Ties To John Malone: Liberty Global Buy Stakes". Deadline.com. November 10, 2015. Retrieved August 16, 2016.
  61. ↑ "Lionsgate sells 6.8% stake to John Malone's Liberty Global". LA Times. November 10, 2015. Retrieved August 16, 2016.
  62. ↑ Merced, Michael J. (November 10, 2015). "Liberty Global Take Stakes in Lions Gate". The New York Times. Retrieved August 16, 2016.
  63. ↑ Vlessing, Etan (November 10, 2015). "Liberty Global To Take Stakes in Lionsgate". The Hollywood Reporter. Retrieved August 16, 2016.
  64. ↑ Lieberman, David (June 30, 2016). "Lionsgate Agrees To Buy Starz For $4.4 Billion In Cash And Stock". Deadline Hollywood. Retrieved June 30, 2016.
  65. ↑ http://www.hollywoodreporter.com/news/lionsgate-starz-nab-shareholder-approval-44b-merger-950417
  66. ↑ Tartaglione, Nancy (July 14, 2016). "Lionsgate Launches Primal Media UK TV Banner From Gogglebox Founders". Deadline Hollywood. Retrieved October 24, 2016.
  67. ↑ Lionsgate (July 12, 2006). "Lionsgate Expands Into Television Syndication Business, Acquires Debmar-Mercury". Retrieved August 12, 2015.
  68. ↑ Nellie Andreeva. "Mission To Colonize Mars To Become Reality TV Series - Deadline". Deadline. Retrieved August 12, 2015.
  69. ↑ Lionsgate (December 2, 2009). "Lionsgate Music Announces Signing of Emily Osment to... -- SANTA MONICA, Calif. and VANCOUVER, British Columbia, Dec. 2 /PRNewswire-FirstCall/ --". Retrieved August 12, 2015.
  70. ↑ Variety Staff (April 30, 2014). "Lionsgate Taps Nerdist’s Peter Levin to Head Interactive Ventures, Games". Variety. Retrieved November 1, 2015.

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