Lionsgate CEO: MGM Discs Would Be Distributed In-House

Oct 26th, 2010 by dvdxplayer 1,128 views |Comments Off

In an extra pitch to MGM shareholders, Lionsgate CEO Jon Feltheimer Oct. 25 mentioned combining the two studios would reduce property or home amusement distribution costs from $27 million to $32 million.

Santa Monica, Calif.-based Lionsgate is urging MGM shareholders to vote Oct. 29 in the direction of a previously announced, debt-to-equity, pre-packaged bankruptcy tactic spearheaded by minority stakeholder Spyglass Entertainment.

Feltheimer, in the regulatory filing, mentioned he would take all domestic disc distribution in-house, relying on 3rd activities to distribute packaged advertising internationally.

Combination using the two studios in 2011 would enhance property or home amusement staffing by 17 positions (108 total) and include $8 million in overhead costs ($12 million total), according in the direction of the pro-forma filing.

MGM discs are at current distributed by 20th Century Fox property or home Entertainment. Lionsgate would also reportedly distribute MGM titles on Blu-ray Disc.

In a sequence of operating tactic assumptions between the two companies, Feltheimer mentioned the mixed yearly cost savings would achieve $100 million.

Specifically, the all round workforce between the two studios would decline 17%, or by 176 positions.

Last week, activist buyer Carl Icahn, who owns larges stakes in the two studios, mentioned he would purchase an extra $963 million of MGM’s $4 billion in demand card debt to help make the merger a reality.

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