Deal aimed to solidify company's position in Hollywood
Lions Gate Entertainment has entered into a 50-50 joint venture with Canadian-based CineGate Holdings to form CineGate Prod. Management Services.
CEO Jon Feltheimer said the deal will create “opportunities to identify and acquire funded projects that may be attractive for distribution by Lions Gate” and solidify the company’s position in Hollywood. Company agreed to buy Trimark Holdings in June for about $50 million.
The group, to be chaired by Lions Gate exec veep John Dellaverson, is expected to manage more than $300 million of strictly Canadian film and TV production during its first six months.
Frank Jacobs has been named CineGate Prod. prexy and Linda Rosenthal will serve as veep. The group will provide management services to Canadian limited partnerships, taking advantage of Canuck tax benefits to fund domestic film and video production.
Combo will draw on Lions Gate’s production expertise and relationships, while Media Ventures group, a Canadian investor financing group that funds U.S. studio productions in Canada, will contribute expertise in Canuck syndication.
“I am thrilled to oversee this unique joint venture and the talented team we have assembled to lead it,” Dellaverson said. “Together we will seek out the most promising television and feature film investment opportunities” to benefit both partners.