Lionsgate and Summit Merger Looking Like It's Going to Happen

According the The Hollywood Reporter, it's looking like Lionsgate's bid to buy Summit Entertainment will soon be a done deal:

Two sources confirm that Lionsgate is closing in on an agreement to acquire Summit Entertainment for about $400 million in cash plus the assumption of debt. The sources say the deal also includes the services Rob Friedman and Patrick Wachsberger, the two top executives behind the studio that has ridden the Twilight movie franchise to the top ranks of Hollywood.

All of the deal points are not final but there is a general agreement, say the sources. An official announcement will take at least another few days and a final deal could take even longer.

As a public company, Lionsgate, which makes both films (Warrior, the Tyler Perry franchise, the upcoming Hunger Games) and television (Mad Men), would be required to disclose a tentative agreement that would be material to its stock price and future – which this certainly would be. Lionsgate, traded on the New York Stock Exchange, closed Friday at $8.41 a share, not far off it’s high for the past year.

Spokesmen for both Lionsgate and Summit, which is privately held, declined comment on Saturday.

The two companies have held merger discussions several times in recent years without ever reaching a deal. The latest talks heated up late in 2011. Also reportedly bidding for Summit was the new Miramax.

Check out Hollywood Reporter for more details.