Lionsgate Buys Into Summit For $412.5 Million

Lionsgate has purchased Summit Entertainment for $412.5 million, structured as a leveraged buyout, in the form of cash and stock.

"We are uniting two powerful entertainment brands," said Lionsgate, "...to establish a commanding position in the young adult market, strengthening our global distribution infrastructure and creating a scalable platform that will result in significant and accretive financial benefits to Lionsgate shareholders."

Currently Lionsgate stock shares are trading at $8.60, almost half of Sony's $17.15 share price and less than a quarter of Disney stock at $38.40.

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