Allen Buying Stake in Film Distributor

Microsoft Corp.’s co-founder, along with other backers, is investing $33.2 million in the loss-plagued Canadian film producer and distributor of such films as the current “Mr. Death” and the critically acclaimed “Gods and Monsters.”

Billionaire Paul Allen will acquire the stake through his Vulcan Ventures Inc. investment vehicle to help Lions Gate shore up its cash position.

Allen, Tele-Munchen, a German broadcaster, and SBS Broadcasting, a Luxembourg-based owner of TV and radio stations in Europe, will receive preferred shares convertible into 13 million common shares at $2.55 a share, and $5 a share for 5.26 million purchase warrants. The warrants give holders the right to acquire shares at $5 a share.

Lions Gate said it will use the money to finance production and distribution.

Jon Feltheimer, a former TV executive at Sony Pictures Entertainment, has joined the Lions Gate board after participating in this round of financing and is expected to play a role in expanding the firm.