MCN Blogs
Ray Pride

By Ray Pride Pride@moviecitynews.com

Lions at the Lionsgate: an analyst says yes, Icahn

onoz_omg2.gifA multitude of emails in various inboxes this morning from “Richard Alan Incorporated Founder and CEO Richard A. Dorfman”‘s publicistas: he has strong opinions about investor Carl Icahn tearing down The House of SAW, after acquiring “4.1 million shares of Lions Gate [sic]Entertainment at a cost of just under $42 million. As a result, Icahn now owns a nearly 4% stake in the last remaining major independent film… and distribution company in the United States.” Specific analysis of Lionsgate’s valuation follows before Dorfman’s esteeming of the company’s many titles. his “Film Library For Dummies” explanation is a sturdy basic read, followed by this: “So, what is Lions Gate [sic] worth? … [I]t’s hard to say for sure other than that it’s going to be worth what the highest bidder is willing to pay for it in an arms length transaction. [We can] get some idea of its value based on [the fund controlled by] George Soros… stanley park.jpgone of the savviest investors in the world [acquiring] the DreamWorks library from Paramount for $900 million… [W]ith just 59 titles, it in no way comes close to having the breadth or depth of the 8,000 titles in Lions Gate’s [sicsic] would have to involve an auction to extract maximum value. This should be possible since there are likely to be plenty of potential bidders, including studios, cable operators and private equity players, all of whom could bid alone or… as part of a consortium. I suspect cable operators in particular will be eager to participate in the bidding since the Lions Gate [sic] library is well positioned to serve as the foundation for one or more new cable channels… “I would not be surprised to see Lions Gate [sic] bring $2 billion or more in a sale, which would translate into a stock price potentially in excess of $16 per share… [T]his conclusion is not based on any rigorous financial analysis. Instead, it reflects a common sense approach that takes into consideration the history and dynamics of recent transactions as well as the current state of the motion picture industry.”

Comments are closed.

Movie City Indie

Quote Unquotesee all »

“Film festivals, for those who don’t know, are not exactly the glitzy red carpet affairs you see on TV. Those do happen, but they’re a tiny part of the festival. The main part of any film festival are the thousands of people with festival passes hanging on lanyards beneath their anoraks, carrying brochures for movies you have never and will never hear of, desperately scrabbling to sell whatever movie it is to buyers from all over the world. Every hotel bar, every cafe, every restaurant is filled to the brim with these people, talking loudly about non-existent deals. The Brits are the worst because most of the British film industry, with a few honourable exceptions, are scam artists and chancers who move around from company to company failing to get anything good made and trying to cast Danny Dyer in anything that moves. I’m seeing guys here who I first met twenty years ago and who are still wearing the same clothes, doing the same job (albeit for a different company) and spinning the same line of bullshit about how THIS movie has Al Pacino or Meryl Streep or George Clooney attached and, whilst that last one didn’t work out, THIS ONE is going to be HUGE. As the day goes on, they start drinking and it all gets ugly and, well, that’s why I’m the guy walking through the Tiergarten with a camera taking pictures of frozen lakes and pretending this isn’t happening.

“Berlin is cool, though and I’ve been lucky to be doing meetings with some people who want to actually get things done. We’ll see what comes of it.”
~ Julian Simpson 

“The difference between poetry and prose, and why if you’re not acculturated to poetry, you might resist it: that page is frightening. Why is it not filled? The two categories of people who don’t feel that way are children and prisoners. So many prison poets; they see that gap and experience it differently. I’m for the gap!”
~ Poet Eileen Myles