With financial trader Carl Icahn focused on a hostile takeover bid for the independent studio, Lionsgate, company Lionsgate CEO Jon Feltheimer and Vice Chairman Michael Burns find themselves at a critical poin, the Los Angeles Times reports.
A settlement with Icahn is "unlikely," according to Burns. And while Lionsgate spends millions to fight Icahn, the studio needs to prove its recent investments in TV Guide Network and online-cable channel movie service Epix can increase earnings and boost its lagging stock, the article says.
The executives are hopeful that the investments will pay off in the next two or three years. Epix, of which Loiongate is a co-owner, should start making money by then, while TV Guide should add $75 million in cash flow at that point, according to the article.
"A number of things we invested in haven’t been reflected yet on the bottom line," Feltheimer told the Times. Icahn says that if he succeeds, the "jury is still out" on Feltheimer and Burns’ roles in the company.
Separately, theLos Angeles Times reports: "Lions Gate Entertainment Corp. has clinched a deal with media tycoon Haim Saban’s private investment firm, Saban Capital Group, to become a partner in Tiger Gate, the company’s recently launched pay-TV venture in Asia."