According to sources at Bloomberg Lionsgate and Summit Entertainment are currently in talks about a possible merger which, if successful, could make The Twilight Saga and The Hunger Games part of the same family.
Lionsgate and Summit have entered numerous merger talks over the years but they’ve all broken down due to issues of money and control. While Lionsgate has about $550 million in debt the company has 13,000 movie and TV titles in its library, including Mad Men and the Saw franchise, and The Hunger Games could develop into a 4 movie franchise and generate $700 million in box office sales if it’s a hit next March.
Summit Entertainment, meanwhile, has raised $750 million this year to finance future movies, and once The Twilight Saga: Breaking Dawn – Part 2 ends its run next year the box office sales for the franchise will total over $3 billion. While that will keep Summit in business for the foreseeable future the company has yet to find a property to replace Twilight, so joining forces with Lionsgate may ensure stability and allow the mini-studios to compete with the likes of Warner Bros., Paramount, Universal and 20th Century Fox.
There’s talk of other companies being interested in a deal with Summit or Lionsgate either separately or in some kind of combination, so a straight Lionsgate/Summit merger may not happen and talks could still break down again, but a Lionsgate/Summit pairing does make a lot of sense.