Lions Gate To Distribute More Movies While Cutting Costs
Lions Gate has found a way to augment the number of films it can distribute to theaters while at the same time holding down expenses, which have threatened to topple it. It announced Monday that it had signed a deal with Relativity, a production and financing company, to distribute its films through 2015. Relativity will pay all production costs, share marketing costs with Lions Gate, and pay Lions Gate a fee to distribute its movies. The deal will allow Lions Gate to slash its own production slate. Analysts regarded the deal as a win-win proposition for both sides and suggested that it would make corporate raider Carl Icahn's effort to take control of Lions Gate more difficult.