Lions Gate is expected to buy Mandate
Lions Gate Entertainment Corp. is in final discussions to acquire Mandate Pictures, a production and foreign sales company based in Beverly Hills, for more than $40 million.
Mandate was one of the producers of such movies as “The Grudge” and the upcoming “Mr. Magorium’s Wonder Emporium.”
It will continue to operate out of its Beverly Hills office selling movie projects to other studios and international rights to foreign territories. Chief Executive Joe Drake is expected to be named head of Lions Gate’s film and international divisions while continuing to oversee Mandate.
The deal will allow Lions Gate to share in all revenue streams from Mandate’s properties, including DVD and pay television. Through Mandate, Lions Gate will also benefit from sequels based on some properties.
Separately, Lions Gate on Thursday posted a net loss of $53.1 million in its fiscal first quarter. Although most of that loss came from the prior quarter’s theatrical marketing expenses, the studio had disappointments, such as “Hostel: Part II” and “Bug.”
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